- The number of bearish large investors in UNI has significantly increased, leading to the selling of the asset
- On-chain metrics have shown a decrease in the total value locked and fees generated as sentiment shifted
UNI has experienced an 11.95% drop in the market over the last 24 hours, coinciding with a shift towards bearish sentiment. This decline may have been influenced by whales in the market.
Further analysis by AMBCrypto revealed that aside from the whales, other market participants have also reduced their engagement with UNI, potentially contributing to the price decline.
Increase in Bearish Sentiment
Recent data from IntoTheBlock shows a notable increase in the number of bears compared to bulls in the market, with 23 bears to 12 bulls in the last 24 hours. Bulls and bears are defined as addresses holding up to 1% of UNI’s supply that have traded the asset on a given day.
This imbalance in favor of bears has led to a dominance of large holders in the trading volume, resulting in the significant price drop.
The bearish sentiment extended beyond whales to liquidity providers, indicating a decrease in UNI usage.
Broader Market Trends
AMBCrypto’s analysis also revealed a bearish shift in the broader market sentiment towards UNI, with key metrics like Total Value Locked (TVL) and generated fees experiencing a decline simultaneously.
The decrease in TVL, representing assets deposited in liquidity pools, suggests that market participants are starting to withdraw and sell their UNI holdings.
Transaction fees have also dropped during this period, indicating lower trading activity and a bearish trend in the market.
Steady Adoption Amidst Bearish Sentiment
Despite the prevailing bearish sentiment, the number of unique traders actively engaging with UNI has remained consistent, ranging between 88,700 and 94,700 addresses. This steady activity level could potentially impact UNI’s price positively in the future.
The active trader cohort has played a role in stabilizing UNI’s price and preventing a sharper decline.
Source: IntoTheBlock
Source: DeFiLlama
For now, the market trend remains bearish for UNI, with key indicators pointing towards a decline in sentiment and trading activity.