Uniswap’s native cryptocurrency UNI is eying its 2022 low courtesy of its downtrend from its March peak. UNI’s price action has been correcting since the start of April, with the alt having already undone its March gains.
UNI was trading at $8.28, at the time of writing, after tanking by roughly 14% over the last 7 days. Its press time price meant it had pulled back by roughly 33% from its $12-level. An extended pullback by 40% would place it at $7.50 or potentially lower.
For reference, UNI hit its current 2022 low of $7.51 on 22 February.
Will UNI achieve a new 2022 low?
Bearish crypto-market sentiments continue to prevail despite heavy discounts on most of the top cryptocurrencies. This includes UNI, which seemed to be a long way from its $44.90 ATH of May 2021 at press time.
In fact, it has registered a notable drop in selling volume over the last few days too.
Source: TradingView
UNI’s indicators suggest that it might be about to experience a reversal any time. Its RSI, at press time, was hovering just above the oversold zone and the MFI was about to dip into the oversold zone. There is still some wiggle room for the bears to push down further before exhaustion. This means it can potentially set a new year-to-date low prior to the next trend reversal.
Can UNI’s on-chain metrics tell us about its current position?
UNI’s exchange flows registered a significant drop in the last two days in line with the reduced trading volume. The exchange inflows have been higher than the exchange outflows during this period. UNI’s exchange inflow volume dropped from 361,188 on 25 April to 184,806 the next day.
Exchange outflows dropped from 273,128 to 106,323 over the same period.
Source: Glassnode
UNI’s exchange flows have been oscillating within the same range, suggesting that a lot of accumulation and distribution has been taking place over the last 4 weeks. Uniswap transaction metrics dipped to its lowest point on 19 April, in line with the sideways price action due to uncertainty. It has since registered some upside as the price dipped lower, however.
Conclusion
Higher exchange inflows than outflows may continue to push the price a bit lower. Such an outcome will result in oversold conditions, and lower prices will encourage more accumulation.
