Close Menu
AsiaTokenFundAsiaTokenFund
  • Home
  • Crypto News
    • Bitcoin
    • Altcoin
  • Web3
    • Blockchain
  • Trading
  • Regulations
    • Scams
  • Submit Article
  • Contact Us
  • Terms of Use
    • Privacy Policy
    • DMCA
What's Hot

Is Web3 Outperforming Traditional Gaming or Still Falling Short?

May 10, 2025

Top 14 Altcoins Set to Explode in MAY 2025 as Bitcoin Dominance Drops

May 10, 2025

Metaplanet Will Outperform MicroStrategy in Bitcoin Returns, Says Adam Back

May 10, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) YouTube LinkedIn
AsiaTokenFundAsiaTokenFund
ATF Capital
  • Home
  • Crypto News
    • Bitcoin
    • Altcoin
  • Web3
    • Blockchain
  • Trading
  • Regulations
    • Scams
  • Submit Article
  • Contact Us
  • Terms of Use
    • Privacy Policy
    • DMCA
AsiaTokenFundAsiaTokenFund

‘Learn from XRP’s price’ for Uniswap after latest SEC scare?

0
By Aggregated - see source on April 12, 2024 Altcoin
Share
Facebook Twitter LinkedIn Pinterest Email
  • Social dominance and circulation escalated, suggesting a return to $11 in the short term.
  • On-chain analysis suggested that perp sellers might lose while spot buyers might gain.

Holders of the Uniswap [UNI] governance token have been left terrified since the U.S. SEC revealed that it planned to enforce a lawsuit against the leading DeFi platform.

After examining the social dominance, AMBCrypto got the evidence of Fear, Uncertainty, and Doubt (FUD). In crypto, FUD refers to traders’ negative feelings about a rumored or confirmed unpleasant development.

Using on-chain data from Santiment, we observed that social dominance spiked on the 9th of April. This indicated that there was a lot of discussion about Uniswap.

Chart showing FUD around Uniswap after the SEC potential lawsuit

Source: Santiment

UNI likely to follow XRP’s steps

Interestingly, this was also the highest the metric had reached in the last 15 months. Historically, extreme fear is not always bad for the price of a token. An example is Ripple [XRP], which also faced regulatory pressure.

But at different points, the price of XRP pumped days after FUD circled the token. Like Uniswap, XRP’s social dominance skyrocketed before the rebound occurred.

For UNI, the value has been plunging. At press time, UNI changed hands at $9.08, representing a 15.27% decline in the last seven days. But a chunk of the gain erasure started on the 119th of April when the news became public.

Another metric reinforcing a bounce was circulation. According to our analysis, UNI’s one-day circulation jumped to 6.99 million.

However, this hike was a sign of increased selling pressure. However, the same metric was 10 times lower at press time, suggesting that the selling pressure had subsided.

Should you get your spot bags ready?

Therefore, the token might cool off from the nosedive, and a potential rally toward the $11 region could be next. At the same time, it is important to check what traders are doing in the derivatives market.

For this part, AMBCrypto considered Uniswap’s Funding Rate. Positive funding implies that longs are paying short fees to keep their positions open.

Uniswap rising circulation and positive funding rateUniswap rising circulation and positive funding rate

Source: Santiment

On the other hand, a negative reading suggests that shorts are paying longs. Beyond the fees paid, Funding Rate, depending on its direction, can impact prices.

At press time, UNI’s Funding Rate was 0.01% but it was lower than the reading on the 9th of April. To be clear, funding becoming more positive, as price moves lower is typically bearish. In this instance, the price might keep plummeting.

 


Realistic or not, here’s UNI’s market cap in XRP terms


However, UNI has been on a slow recovery within the last hour. With funding becoming less positive, it implies that perp sellers are fading the jump, and spot buyers could be ready to drive the price higher.

For now, it remains uncertain if Uniswap’s case will take a long time like that of Ripple. If that’s the case, FUD might appear at different intervals. If not, UNI, as a token, might significantly appreciate like other altcoins.

Next: Bitcoin at $70K: Here’s why whales are refusing to sell so high

Credit: Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Top 14 Altcoins Set to Explode in MAY 2025 as Bitcoin Dominance Drops

May 10, 2025

Metaplanet Will Outperform MicroStrategy in Bitcoin Returns, Says Adam Back

May 10, 2025

Solana Price Analysis: SOL Price Approaches Major Resistance Around $181 Amid Altcoin FOMO

May 9, 2025
Leave A Reply Cancel Reply

What's New Here!

Is Web3 Outperforming Traditional Gaming or Still Falling Short?

May 10, 2025

Top 14 Altcoins Set to Explode in MAY 2025 as Bitcoin Dominance Drops

May 10, 2025

Metaplanet Will Outperform MicroStrategy in Bitcoin Returns, Says Adam Back

May 10, 2025

Tech Expert Predicts $1 Million Bitcoin — ‘Only One More 10x Left’

May 10, 2025
AsiaTokenFund
Facebook X (Twitter) LinkedIn YouTube
  • Home
  • Crypto News
    • Bitcoin
    • Altcoin
  • Web3
    • Blockchain
  • Trading
  • Regulations
    • Scams
  • Submit Article
  • Contact Us
  • Terms of Use
    • Privacy Policy
    • DMCA
© 2025 asiatokenfund.com - All Rights Reserved!

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.