Is Uniswap Token (UNI) a Good Buy?
At the time of writing, Uniswap Token (UNI) is ranked in the 24th position in the CoinMarketCap ranking of cryptocurrencies. Uniswap is the largest Decentralized exchange in the world presently. UNI trades at $4.89 at present with a 24 hours decrease in price by 8.27%.
Although Uniswap Token (UNI) has decreased by 47.7% in the past 30 days after attaining a 30 high price of $9.68 at the time of writing, it is still a good buy.
Uniswap Token's past history
Uniswap Token (UNI) is one of the cryptocurrencies that many thought could collapse after it gave an airdrop of 400 UNI to all wallets that had used the exchange. The airdrop distribution was made on September 17th, 2020. Since this airdrop volume is 15% of its total supply, many thought that the token would collapse. This led to a decrease in the price of the token below $4, like those who claimed did a panic sell. However, less than 8 months after the distribution, UNI attained its present all-time high of $44.37 on May 3rd, 2021. This could have given the traders over a 10 times increase.
Present Data of sellers' pressure
The data available on Tradingview technical analysis of Uniswap Token shows that 15 out of the 26 indicated studied, shows sell. Only 1 indicates buy. The remaining 10 are neutral. However, since the relative strength index value of Uniswap Token is about 33. This indicates that it is approaching the oversold region of 30. However, investors who buy at this present price would receive a good return when the market reverses around the oversold region.
More incoming Ethereum projects
The gas fees in the Ethereum blockchain are high when compared to the trading fees on blockchains like Stellar blockchain, Binance Smart Chain, Polygon Blockchain, or Solana blockchain, yet more projects are joining the Ethereum blockchain due to its security and adaptation for Decentralized Applications (Dapps). The rise in the number of these Ethereum tokens will increase the adoption of the Uniswap exchange, which will directly impact positively on the price of UNI.
In conclusion, top exchange tokens are most rewarding. Hence, long term investors holding Uniswap Token (UNI) will have good returns.
