The overall cryptocurrency market has been in the downturn for over a month and is currently moving in the same range. Amid this struggling situation, an on-chain analytic firm Santiment made a post on X and shared insights on overbought and underbought cryptocurrencies. According to Santimnet, Uniswap (UNI) and Shiba Inu (SHIB) are in the underbought zone whereas, top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Toncoin (TON) are in the overbought zone.
According to MVRV Z-Score, which identifies overvalued and undervalued assets based on average trader returns, top caps are in the following categories: Overbought: Toncoin, Bitcoin, EthereumUnderbought: Uniswap, Shiba Inu pic.twitter.com/PWESMh7wRf
— Santiment (@santimentfeed) June 29, 2024
SHIB and UNI are in underbought zone, Is this bullish sign?
However, Santiment identifies this underbought and overbought range by analyzing the MVRV Z-Score, according to a post on X. The analytics firm also added that the MVRV Z-Score identifies overvalued and undervalued assets based on the average trader’s return. Besides this analysis, the overall cryptocurrency market is down by 1.52%, and top cryptocurrencies including BTC and ETH have experienced a price fall of over 1.2% and 1.7% respectively in the last 24 hours.
Meanwhile, the underbought assets including UNI and SHIB have experienced a price fall of over 6% and 1.4% respectively in the last 24 hours. Despite the price fall among these underbought assets, it is observed that the open interest (OI) of UNI is stable, while the OI of SHIB has surged by 7.7% in the last 24 hours, with a 4.7% surge noted in the last hour. This massive surge in the OI of SHIB indicates investors’ interest and confidence.
UNI technical analysis and key levels
According to expert technical analysis, UNI is at a crucial support level of the 200 EMA (Exponential Moving Average) near $8.85 on a daily timeframe. This price above the 200 EMA indicates that UNI is still bullish. However, if UNI closes with a strong candle below the 200 EMA or the $8.5 level on a daily timeframe, there is a high possibility that UNI could fall more than 20% in the coming days to the $6.7 level.
However, we may also see a bullish upside move, if the UNI daily candle gives a closing above the $9.7 level near to 50 EMA.
SHIB technical analysis and key levels
Besides the technical analysis of UNI, SHIB on the daily timeframe is looking bearish as it is below both the 50 and 200 EMAs. Additionally, in the last few days, it has been in a consolidation zone between the $0.000016 and $0.000018 levels. However, in this bearish market sentiment, there is also a possibility that if the SHIB price falls below the $0.000016 level, the next support will be at the $0.0000155 level.
Examining SHIB’s OI data signals that the price may jump from this level, and if the SHIB daily candle closes above $0.000018, SHIB could surge more than 15% in the coming days.