A closely followed trader says that one Ethereum (ETH) altcoin is emerging as one of the most established crypto assets with strong fundamentals.
Pseudonymous analyst The Flow Horse, also known as Cantering Clark, tells his 180,300 Twitter followers that the decentralized exchange Uniswap (UNI) could be gearing up for a move to the upside.
According to the trader, UNI is flashing signals that suggest it might be ready to begin an uptrend.
“I am thinking that UNI is blue-chip status. Given it has spent quite some time basing out I am going to start buying some. Back above the 200-week moving average and weekly momentum oscillators are starting to pick up.”
Uniswap is trading for $6.54 at time of writing, up 1.54% in the past 24 hours.
Cantering Clark also weighs in on Bitcoin (BTC).
He says his previous bet that BTC would witness a significant correction appears unlikely at the moment, and he predicts there won’t be a lot of price action until there are further developments on Bitcoin exchange-traded fund (ETF) applications, which could come in August.
“My August BTC puts at [trading options platform] Synquote feel like a waste. $26,000 strike OTM (out of the money), not expecting a touch but just hoping volatility and risk would reprice, and I could be out during some overreaction.
There isn’t a whole lot of reason to expect much until the first ETF date, and there doesn’t seem to be any over-heated derivatives positioning or willingness for spot sellers to start sweeping the bid.”
The trader is also keeping a close eye on the Bitcoin implied volatility index, which shows that BTC’s current volatility level is 34.16%, its lowest percentage in years.
Cantering Clark says that the low levels of Bitcoin’s implied volatility suggest that the top crypto asset is setting up for a big move, without specifying a direction.
“Don’t get too complacent. Volatility compression leads to volatility expansion at some point.”
Bitcoin is trading for $29,204 at time of writing, up 0.2% in the last seven days.
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Generated Image: Midjourney