Key Points
- Exchange supply for UNI is increasing while it’s decreasing on Ethereum’s network.
- Ethereum’s price could potentially drop to $9.20 due to a decrease in demand.
Over the past week, the prices of Uniswap’s [UNI] and Ethereum [ETH] have not been moving in sync.
At the time of writing, UNI was trading at $9.98, marking a 2.22% increase over the past seven days.
Conversely, the price of ETH was $3,687, representing a 2.56% decrease within the same timeframe.
Exchange Net Position Change
The Exchange Net Position Change for Uniswap was 733,683 on June 8th. This metric measures the total supply of tokens in exchange wallets. A positive figure indicates an influx of tokens into exchanges, which could potentially lead to a price decrease.
However, a negative figure suggests an increase in withdrawals, potentially lowering selling pressure. For UNI, the number of tokens held on exchanges has been on the rise since June 3rd.
As such, there’s a possibility that the token’s price could drop below the $9 mark if the supply continues to remain positive.
ETH’s Different Story
However, the situation for Ethereum is quite different. An analysis of the same metric for ETH showed an increase in coins being withdrawn from exchanges. According to Glassnode, approximately 576,851 ETH was taken off exchanges on the same day that 733,683 UNI tokens were added.
Consequently, it’s possible that we could see UNI’s price fall while ETH recovers.
If this comes to pass, it would be a stark contrast to the price performance of these cryptocurrencies when the U.S. SEC approved spot Ethereum ETFs. Prior to this announcement, ETH’s price surged and UNI, being linked to the blockchain, followed suit.
UNI’s Possible Decline
To predict potential price targets, the Weighted Sentiment was analyzed. This metric reflects the market’s perception of a project. At the time of writing, the Weighted Sentiment for UNI was -0.173.
This negative figure suggests that the majority of comments about Uniswap lean towards the bearish side. As a result, demand for the token could decrease, triggering a potential price drop.
Furthermore, the Market Value to Realized Value (MVRV) Z Score, which was 27% a few days ago, has dropped to 23.58%. A positive MVRV Z Score typically indicates a bull phase for the token.
However, a recent decrease in the MVRV Z Score does not necessarily mean that UNI is entering a bear phase. It does, however, indicate that the price could potentially slide down the charts.
Given the current market conditions, a drop to $9.20 seems plausible for UNI.
