Uniswap is 17% lower than its apex in April 2023. The low MVRV ratio indicates that the price of UNI has attained a local low.
The price of Uniswap (UNI) has decreased by 17% since its local apex of $6.40 on April 14. After a two-week price decline, on-chain data indicates that UNI may be due for a price recovery.
Uniswap is a prominent decentralized trading protocol for automating decentralized finance (DeFi) token trading. A surge in DeFi trading activity in April caused the UNI price to approach the $6.5 mark.
At the end of the month, bulls seized control of the altcoin market, but Bitcoin soon rejected the $5.3 zone. Currently, on-chain data suggests that investors are laying the groundwork for UNI to launch positively in May 2023.
The Uniswap(UNI) price dropped 17% as the altcoin market contracted marginally at the end of April. Nonetheless, on-chain data indicates that the majority of recent UNI investors may be unwilling to incur additional losses.
According to Santiment’s Market Value to Realised Value (MVRV 30d) ratio, the majority of crypto investors who purchased UNI in the last 30 days now possess unrealized losses of over 7%.
MVRV measures the valuation of a cryptocurrency asset relative to its realized value. When the MVRV ratio is low, as seen above, it indicates that the market is undervalued and investors should be on the watch for opportunities to purchase.
Likewise, it indicates that the unrealized losses of current holders have reached a critical level. To avoid incurring such substantial losses, UNI holders will likely cease trading within the next few days. This decline in selling pressure may be sufficient to spark a price recovery.
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