It turns into a party when the price charts show a bullish signal after nearly a quarter of bearishness. Now, in the event of a price rally, investors are cashing in or the chain is observing the arrival of new investors. Moreover, with a price increase, there seems to be a change in investor activity.

But not in the case of Uniswap

The on-chain activity of UNI investors observed a peculiar behavior of the investors. Even after a drop of 57.28%, investors did not exit their position. On the other hand, surprisingly, a rally of 44.83% did not cause investors to buy UNI in their portfolio.

On-chain activity shows that during the January price drop, transaction volume has not seen a significant change as Uniswap’s daily transactions averaged around $40-$50 million.

And even in the past two weeks, despite price recovery, no significant difference has been noted. The only time volume peaked was on February 27, when UNI rose 7.8% within a day.

Uniswap transaction volumes | Source: Intotheblock – AMBCrypto

The same is backed up by data from Coinbase, where the buy and sell orders are not only a difference of just 44k UNI (worth $484k), but also significantly lower than what the exchange usually handles in the case of Uniswap.

Uniswap buy and sell orders | Source: Intotheblock – AMBCrypto

This could mean investors are either HODLing on Uniswap’s confidence in anticipation of a rapid rise, or waiting for the right time to recoup their losses.

However, the scenario could change in the coming months as investor interest appears to be skewed towards the positive side after three months.

Notably, a spike was recorded as a rally began on March 17, but the gradual rise puts the stat on the cusp of reversing the trend.

Uniswap investor sentiment | Source: Santiment – ​​​​AMBCrypto

This could push UNI towards the critical resistance of $14, which will help the token recover from the losses of the past two months. Eliminating the year-to-date losses is another challenge that will take much longer for Uniswap.

Uniswap price promotion | Source: TradingView – AMBCrypto

For now, trading at $10.75 at the time of writing, the altcoin is looking at consolidation with the price indicators stable in the bullish zone.



This post Uniswap investors HODL despite up 45%; is it trust or fear?

was published first on https://ambcrypto.com/uniswap-investors-hodl-despite-45-rise-is-it-confidence-or-fear/

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