- 60% Uniswap investors are in the profit after a 122% gain in 30 days.
- The profitability of the portfolio is at the highest level since 2021, increasing the chance of profit-taking.
Uniswap [UNI] has shown a strong bull run over the past 30 days after gaining 124%. At the time of writing, UNI was trading at $15.55 with trading volumes of over $1 billion each CoinMarketCap.
UNI’s rally seems to cool down after that Bitcoin [BTC] drew attention away from altcoins after going past $100,000. Nevertheless, the altcoin remains in bullish territory amid an influx in wallet profitability.
Data from IntoTheBlock shows that currently more than 60% of UNI holders are In the Money (in profit), marking the highest level of portfolio profitability since mid-2021.
Source: IntoTheBlock
Whenever the number of wallets with profits increases because the rally shows signs of exhaustion, traders tend to start selling to book profits. This could cause the rally to stall or trigger a downturn.
The inflow of currencies at the UNI is increasing
Some trades are already posting profits on UNI, amid a surge in inflows to spot exchanges. According to CryptoQuant, on December 4, inflows to the Uniswap exchanges reached a one-week high of 1.54 million UNI, valued at more than $24 million.
Source: CryptoQuant
The spike in currency inflows coincided with the UNI’s rise to an eight-month high of $16.52, an indication that this level may have signaled a local top.
However, given that net flows were negative during the day, this could indicate that there is enough demand to prevent a trend reversal. Moreover, buyers remain active, which argues for further gains.
Uniswap’s RSI is at an overbought level
Uniswap’s daily chart shows the altcoin at an overbought level after the Relative Strength Index (RSI) reached 78. This could precede a correction in the short term, as has been the case in the past.
Meanwhile, UNI’s Chaikin Money Flow (CMF) has reached 0.20, indicating buying activity is at its highest level in months.
(Source: Handelsview)
If buyers maintain the momentum, UNI could rise to the Fibonacci level of 1.618 ($22.59) and reach its highest level since early 2022. Conversely, a drop below $14.45 could trigger a new downturn.
Read the one from Uniswap [UNI] Price forecast 2024–2025
The rising number of new adoptions suggests…
The new adoption rate has gradually increased to 32.44% over the past week, according to IntoTheBlock. This suggests that there is a large number of new buyers gathering Uniswap.
Source: IntoTheBlock
An increase in new Uniswap addresses indicates retail FOMO, which could help accelerate the uptrend and generate more profits for UNI.