Uniswap (UNI) Price Analysis: Should You Buy After the Dip?

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Uniswap (UNI) Price Analysis: Should You Buy After the Dip?

Uniswap might have tanked sharply recently (now $5.40), but previous patterns suggest that there may be upside potential around the corner.

We can't predict the future, but we can analyze what happened in the past. Stack has looked at the past performance of Uniswap (UNI). We analyzed 15 previous occurrences when the price fell sharply over a period of 7-day.

Why Uniswap's Price Might Be Moving Move Higher

Essentially, because of several similar occasions in the past. That is to say, we have seen this situation play out before.

Over those 15 past occurrences, we found that 80% of the time the price increase by a median 20.23% over the following 60 days.

For example, on June 21st, 2021 we saw the price of Uniswap fall by -17.4%, only to rebound by 83.1% over the following 60 days.

What are the implications for investors?

It's important to consider that this is just one indicator. Many of factors can affect the price of any investment.

Crypto prices are influenced by social media, developer activity, the number of exchanges and on-chain activity. Stack factors all these into it's ranking system to make it quick to compare the quality of different cryptos.

If you feel that other factors, including the broader crypto market, are favorable given the suggested 7-day investment horizon. Then it could represent a good time to invest, or a good entry point. We recommend that you do your own research (DYOR) before making any investment decisions.

What else might be moving the price?

Lot's of factors can influence the price of any investment. These are just a few that could impact the price of Uniswap.

The direction of the broader market

The broader market is also down by a median -9.6%. Most cryptos are highly correlated, especially to Bitcoin. So this is likely affecting the price. Going against the grain can work, but should be done with caution.

Developer activity

How active have the developer for Uniswap been?

Over the past 4 weeks there have been 175 commits on Uniswap's Github account. This compares to an average of 4 commits per week.

Spotting significant changes in developer activity can highlight potential new products being worked on and abandoned projects that might be in decline.

Social activity

Social media can have a powerful effect on cryptocurrency prices. Even a single tweet can move markets (we're looking at you Elon). It's difficult to gauge sentiment just by scrolling, but you can use tools like Stack to monitor the growth of a project's followers.

Uniswap's Twitter followers have increased by 0% over the past 7 days. You can view stats for other networks in the full report for Uniswap.

Important Disclaimer: This material is for informational purposes only. None of the material or any material on the stack.money website should be interpreted as investment advice. Stack does not make any express or implied warranties, representations or endorsements whatsoever with regard to the material or related information. In particular, you agree that Stack and it's owners assume no warranty for the correctness, accuracy and completeness of the material.
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