Analytics platform Santiment is looking at two crypto assets recording triple-digit percent increases over a relatively short period of time.
“Uniswap has been on quite the tear in the past seven weeks, decoupling from the rest of the altcoin pack in several instances, and jumping +153% since June 18th.”
According to Santiment, the daily address activity of Uniswap has risen and large holders of the crypto asset also continue to accumulate.
“It’s also great to see that shark and whale addresses have been accumulating heavier and heavier percentages of Uniswap’s overall supply since May. The 100k to 1m UNI addresses, in particular, saw a massive accumulation spike just two weeks ago. And continued price rises soon followed.
And speaking of whales, the amount of large transactions (which we deem to be transactions valued at $100,000 or more) are rising back to May levels as well. We can clearly see the major clump of big whale transactions that began forming one week ago, just prior to the major price rise up to $9.69.”
Uniswap is trading at $8.96 at time of writing.
The crypto analytics firm says that even though those who bought Uniswap 30 days ago are in double-digit profits, those who purchased the crypto asset a year ago are still in losses.
Consequently, Santiment says that Uniswap may fall in price over the short term but it is still undervalued over the long run.
“We can see that the 30-day Market Value to Realized Value (MVRV) is currently up to +22.5%, which is well above the backtested ‘Danger Zone’ of +15% or more. But even with mid-term trading returns beginning to overflow, the good news is that long-term traders (in the 365-day MVRV) are still well under water. This means that there may be an upcoming downturn in the next week or two for UNI, but its future for the long-term still looks to be undervalued.”
MVRV is the ratio of the present price and the average acquisition price of the particular asset. An increase in the MVRV value indicates a rise in the potential profits.
Santiment next looks at Ethereum (ETH) scaling solution Optimism (OP). According to the analytics firm, Optimism has undergone a “classic dump and pump” move as it soared by slightly over 300% from a July low of $0.45 to a high of $2 in August.
Optimism is trading at $1.93 at time of writing.
The analytics firm says that Optimism could undergo a correction of over 30% to a price of just above $1.297 over the short term based on the Elliot Wave theory.
“Expect a correction to around the bottom of wave four soon, but not more, as five waves tend to continue after that.”
The Elliott Wave theory states that the long-term price trend of an asset moves in a five-wave pattern while corrections move in a three-wave pattern.
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The post Will Uniswap and Optimism’s Massive Crypto Rallies Continue? Santiment Analyzes Top Ethereum Altcoins appeared first on Tech Talk.