Uniswap Plunges 12% Amid Crypto Market Bloodbath: Can Bulls Recover $10?

• Despite volatility, UNI has rebounded by 6% to $10.28, with increased trading volume indicating resilience amidst market fluctuations.
• Uniswap’s fee generation has surged, surpassing $100 million in the past month, outpacing other decentralized exchanges (DEXs).

On Tuesday, June 18, UNI, the native cryptocurrency of decentralized exchange Uniswap, faced strong selling pressure dropping by more than 12% all the way to the low of $9.30. Earlier this week on Monday, June 17, the UNI price had rallied all the way to $12.0. Thus, it’s clear that the Uniswap (UNI) altcoin is going through a period of massive volatility.

The recent surge in Uniswap’s price has coincided with a substantial purchase of Ethereum and Uniswap by a wallet associated with Amber Group, a prominent crypto investment firm. This renewed whale activity, along with changes in broader macroeconomic factors, could trigger another price increase for Uniswap and other crypto assets.

However, after yesterday’s selling pressure, the Uniswap (UNI) price bounced back strongly and is currently trading 6% up at $10.28 with a market cap of $6.16 billion. the daily trading volume has also surged 13% to more than $300 million.

In the past week, Uniswap has surged by 8.23%, while over the last 30 days, it has experienced inflows exceeding 50%, indicating robust bullish momentum. Despite being 74% below its peak of $44 during the 2021 bull market, recent whale activity indicates ongoing upward pressure on its price.

Uniswap (UNI) On-Chain Data

Despite recent gains, UNI is encountering resistance around the $12 mark and has retraced more than 13%. On-chain data reveals an increasing supply of UNI on exchanges, suggesting a possible local peak. Technical indicators such as the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are showing bearish divergence, indicating a potential upcoming price decline.

The RSI’s lower high on June 16 compared to UNI’s higher high typically signals a reversal or short-term correction.

On-chain metrics further support this bearish outlook. UNI’s supply on exchanges rose from 67.66 million on June 15 to 68.89 million on June 17, a 2% increase, suggesting potential profit-taking. Development activity, tracked by Santiment, decreased from 95.14 to 90.34 during the same period, raising concerns about ongoing project innovation and engagement.

If UNI manages to close above $12, this bearish scenario would be invalidated, potentially paving the way for a rally toward $14. Conversely, a failure to sustain above the $10 level could prompt a decline toward support levels at $9.06 and $7.00

Strong Fee Collection

In the past 30 days, Uniswap has outpaced all other decentralized exchanges (DEXs) in fee generation, according to recent data from Token Terminal.

During this period, Uniswap DAO accrued nearly $100 million in fees, making it the top earner among the top 20 DEXs. According to the Crypto News Flash report, on-chain analytics indicate that Uniswap DAO’s fee generation surpasses the combined total of the next four leading decentralized exchanges.

As of June 18, Uniswap DAO’s fee earnings exceeded those of PancakeSwap, Aerodrome, Uniswap Labs, and GMX combined. While both PancakeSwap and Aerodrome are on track to surpass $20 million in fees for June, the following two DEXs fall significantly behind.

Token Terminal differentiates Uniswap Labs as a distinct entity due to its revenue model, which involves charging fees to users accessing the DEX protocol through its official frontend application.