Will Uniswap’s massive crypto-optimism rallies continue? Santiment Analysis of the Best Ethereum Altcoins

Analytics platform Santiment is examining two crypto assets that have reported triple-digit percentage increases over a relatively short period of time.

Starting with decentralized finance (DeFi) platform UniSwap (UNI), Santiment claims that the value of the crypto-asset has increased by more than 150% over the course of about two months.

“Uniswap has had one hell of it over the past seven weeks, breaking off from the rest of the altcoin stack multiple times and up 153% since June 18.”

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According to Santiment, Uniswap’s daily address activity has increased and crypto-asset holders will also continue to accumulate.

“It’s also great to see that sharks and whale addresses are increasingly accumulating huge percentages of Uniswap’s total supply since May. UNI addresses 100,000 to 1 million, in particular, saw a huge spike in backlog just two weeks ago. It quickly followed That constant price hike.

And speaking of whales, large transaction volumes (we’re assuming they are upfront transactions of $100,000 or more) are also bouncing back to May levels. We can clearly see that the big whale is trading with the big money that started appearing a week ago, before the big price hike to $9.69.

Source: Santiment

Uniswap is trading at $8.96 at the time of writing.

The crypto-analytics firm claims that while those who bought Uniswap 30 years ago are making double-digit profits, those who bought the crypto-asset a year ago are still making losses.

Therefore, Santiment says that Uniswap may go down in price in the short term, but it’s still undervalued in the long term.

“We can see that the 30-day Market Cap in Realized Value (MVRV) is currently at +22.5%, which is well above the tested ‘risk zone’ of +15% or more. But even as trading returns start to spread in the medium term, The good news is that long-term traders (in the 365-day MVRV) are still under water. This means there could be a dip in the future in the next week or two for UNI, but its long-term future still looks undervalued. real.

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Source: Santiment

MVRV is the ratio of the current price to the average purchase price of a given asset. An increase in the value of MVRV indicates an increase in potential earnings.

Next, Santiment takes a look at the optimism of the Ethereum (ETH) scaling solution (OP). According to the analytics firm, optimism underwent the “classic dump and pump” move as it rose just over 300% from a low of $0.45 in July to a high of $2 in August.

The Optimism is trading at $1.93 at the time of writing.

The analytics firm claims that the optimism could see a correction of more than 30% to the price just above $1,297 in the near term based on the Elliot Wave theory.

“Expect a downward correction from the fourth wave soon, but no more, as the fifth wave tends to continue after that.”

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Source: Santiment

Elliott waves theory states that the long-term price trend of an asset extends in a five-wave pattern while corrections are applied in a three-wave pattern.

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Main image: Shutterstock / Ekaterina Glazkova

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