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Uniswap (UNI) gains nearly 50% in 24 hours as China’s latest crypto purge boosts DEX tokens

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Uniswap (UNI) prices staged a solid rebound after crashing last week in the wake of China’s decision to intensify its anti-Bitcoin (BTC) and cryptocurrency rhetoric.

UNI price gained 14.90% on Monday to reach an intraday high of $26.26. UNI/USD’s climb came a day after it dropped to a monthly low of $17.63. As a result, it churned out more than 48% profits for the dip buyers within the last 24 hours.

Adoption FOMO

UNI serves as a governance token inside Uniswap’s decentralized exchange (DEX) ecosystem. As a result, its holders get to vote on matters that help steer the future direction of the DEX platform.

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Additionally, UNI holders could also receive a potential revenue share in the future. For the uninitiated, Uniswap’s governance contract contains a so-called “fee switch”; if activated, it will enable UNI holders to earn a part of the protocol’s fees.

Some users already generate revenues by contributing to Uniswap’s pools of assets, earning between 0.05% and 1% of the value of each trade in the current version.

Uniswap’s liquidity pool schematic. Source: Uniswap Official Doc Page 

Therefore, the prospect of Uniswap growth as a DEX could also mean a higher adoption curve for UNI. And so it appears, China’s intensifying crackdown on the crypto industry has boosted the tokens appeal among speculators.

The People’s Bank of China (PBoC) and other government agencies deemed crypto transactions illegal in an announcement made public on Friday. Meanwhile, they also targeted offshore cryptocurrency exchanges, warning that it is illicit to provide online trading services to Chinese residents.

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The move served to fix a loophole that remained in place after the PBoC banned all regional financial institutions from offering services to crypto companies. During this time, China-based traders had continued to use off-shore cryptocurrency trading platforms, such as Huobi, Binance and OKEx.

But decentralized trading platforms like Uniswap are attempting to steer clear of governmental jurisdictions by replacing the custodial asset model with a non-custodial one based on smart contracts and multi-signature technology. 

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As a result, the recent bout of buying in Uniswap markets has appeared in sync with similar rallies across its top rivaling DEX tokens, as shown in the Messari index below.

Uniswap and SushiSwap (SUSHI) has led DEX gains in the previous 24 hours. Source: Messari

Overall, the DEX index containing 60 assets was up 10.27% around 12:05 UTC, calculated on a 24-hour adjusted timeframe. Meanwhile, the gains of 13 centralized exchange tokens, including Binance Coin (BNB) and FTX Token (FTT), came out to be only 0.77% in the same period, suggesting traders’ sudden FOMO for their DEX rivals.

Centralized exchange tokens in the previous 24 hours. Source: Messari

UNI technicals

UNI prices have been trading lower inside a parallel descending channel that appears to be the “handle” of a classic cup-and-handle technical pattern.

The setup emerges when an asset forms a rounding bottom (cup) while correcting after a solid move higher. After completing the formation, it trends lower in a descending channel range — which typically leads to a breakout to the upside.

In rising so, the asset sets its bullish target at a distance equal to the cup’s depth.

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UNI/USD daily price chart featuring the cup and handle pattern. Source: TradingView

UNI ticks almost all the boxes when forming the cup-and-handle pattern in recent sessions. The Uniswap token is now eyeing a breakout from its descending handle channel range, with a profit target set at $17.83 above the cup’s resistance level at $48.54.

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Uniswap Price Prediction: UNI bulls eye 40% upswing

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  • Uniswap price broke out of a descending parallel channel on October 1 but lacks momentum.
  • A decisive close above $25.24 could signal the start of an uptrend.
  • UNI will face $29.43 before hitting the $33.34 resistance barrier.

Uniswap price broke out of its consolidation phase on October 1 but showed no signs of moving. A bounce that pushes it past the immediate resistance level could trigger the start of an uptrend.

Uniswap price prepares for volatile move

Uniswap price set up three lower lows and lower highs since August 18. Connecting these swing points using trend lines results in the formation of a descending parallel channel. While a move above the channel’s upper barrier usually indicates a breakout and catalyzes a run-up, UNI seems to be facing a problem. 

Since its breakout, Uniswap price has dropped 7%, slicing through the $25.24 support floor. Therefore, UNI needs to gather steam and produce a decisive close above this resistance level to signal the start of an uptrend.

Doing so will allow Uniswap price to embark on a 40% climb to $33.34. However, UNI will face stiff resistance around $29.43, which must be cleared for the bulls to reach their destination.

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UNI/USDT 1-day chart

UNI/USDT 1-day chart

Firmly supporting the potential bullish outlook is Santiment’s Market Value to Realized Value (MVRV) model. This on-chain metric is used to determine the average profit/loss of investors that purchased UNI over the past year.

Currently, the 365-day MVRV is hovering at -1.21%, suggesting that short-term investors have already sold their holdings and that a sell-off at this stage is unlikely. Moreover, the negative territory is where long-term holders accumulate. Therefore, a potential surge in buying pressure could kick-start a new uptrend.

UNI 365-day MVRV chart

UNI 365-day MVRV chart

IntoTheBlock’s Global In/Out of the Money (GIOM) model supports the cautiously optimistic scenario. This model shows that roughly 31,700 addresses that previously purchased 244.64 million UNI at an average price of $27.29 are “Out of the Money” and are likely to sell if Uniswap price ever rises to this level.

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Therefore, the buyers need to overcome this resistance level to have any chances of an upswing.

UNI GIOM chart

UNI GIOM chart

While things are not looking so good for Uniswap price, continuing this downswing could lead to a retest of the $20.62 support floor. A breakdown of this barrier will reveal a weakness among the buyers and knock UNI down to $18.

If the bulls fail to defend this level, it will invalidate the bullish thesis and likely knock UNI down to $14.01.

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Uniswap price analysis: Price equalizes above $24 after minimal recovery

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  • UNI price has been uplifted to $24.82.
  • Uniswap price analysis is indicating rise in price.
  • Support has been stable at $18.828.

The Uniswap price analysis suggests, the UNI/USD price has been unrestrained from the bearish pressure, as slight progress has been reported for today. The price is trying to resettle above $24 after following the downward movement for the past week. Right now, it is present at a $24.82 value as a slight bullish recovery has been detected in the last 24-hours. Although the bears tried to restrict the upward trend, the bulls are trying to proceed with their mission once again.

UNI/USD 1-day price chart: Bullish momentum stimulates as to retrieve price over $24

The one-day Uniswap price analysis is showing signs of bullish recovery as the green candlestick has returned to the price chart. The past few days have proved crucial for the cryptocurrency, as a downward trend has been following. There has been a recurring fall occurring in the coin value, but today its value has been restored to $24.82. The current value is quite close to the moving average (MA) value which is settled at $25.5.

Uniswap price analysis: Price equalizes above $24 after minimal recovery 1

The SMA 20 curve is traveling high again as the bulls are regaining their strength. The Bollinger bands Indicator in the 1-day price chart is pointing out the following values; the upper value at $27.91 while the lower one at $18.82. The Relative Strength Index (RSI) score has improved up to 51.54 as well because of the rise in price.

Uniswap price analysis: UNI faces rejection above $24 after recent drop-off

The price has been traveling low according to the four hours Uniswap price analysis. The recent downturn in price movement has resulted in its decline as it has been lowered to $24.82. Chances of recovery seem minimized as the bearish slide has been proceeding uninterruptedly. The price has gone below the moving average value as well which has been standing at $25.2 position.

Uniswap price analysis: Price equalizes above $24 after minimal recovery 2
UNI/USD 4-hours price chart. Source: TradingView

As the volatility has slightly increased, the upper Bollinger band is now touching the $26.20 mark whereas the lower Bollinger band is on the $24.35 mark. The RSI curve has descended to the 45.30 mark, confirming the drop in price.

Uniswap price analysis: Price equalizes above $24 after minimal recovery 3
UNI/USD technical indicators chart. Source: TradingView

On the contrary, improvement in price has been observed if we overview the situation on a general basis. This is why the technical indicators chart is giving a bullish hint, with 12 indicators on the buying mark, nine indicators on the neutral mark, and five indicators on the selling mark.

The moving averages indicator is confirming the overall bullish lead as well by giving out a buying signal. We can see nine indicators standing on the buying position, with only five indicators on the selling position and one left on the neutral position. The Oscillators are giving a bullish signal as well, and there are eight oscillators on the neutral level, three oscillators on the buying level, and none on the selling level.

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Uniswap price analysis conclusion

The bulls are trying to recover once again after a continuous drop in price occurred during the past few days. The UNI/USD price has rejoined the $24.82 level, thus confirming the rise in price. We can expect a downward price movement in the upcoming hours, as the four hours price analysis is dropping bearish hints.

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Uniswap Price Analysis: UNI retests $25 as support, will it hold?

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  • Uniswap price analysis is bullish today.
  • UNI/USD retraced to $25 over the last 24 hours.
  • Next support at $23. 

Uniswap price analysis is bullish today as a retracement over the last 24 hours took the market towards the previous resistance level of $25 to be retested as support. Therefore, we expect bullish momentum to return later today as a new higher low is likely set.

Uniswap Price Analysis: UNI retests $25 as support, will it hold? 1
Cryptocurrency heat map. Source: Coin360

The overall market traded mostly in the red over the last 24 hours. The market leader, Bitcoin, gained 0.22 percent, while Ethereum lost 1.1 percent. Axie Infinity (AXS) is still the top performer, with a gain of 32 percent.

Uniswap price movement in the last 24 hours: Uniswap rests previous resistance at $25 as a support

UNI/USD traded in a range of $24.91 – $26.61, indicating mild volatility over the last 24 hours. Trading volume has declined by 22.71 percent and totals $398.4 million, while the total market cap trades around $15.65 billion, ranking the coin in 12th place overall.

UNI/USD 4-hour chart: UNI to continue higher?

On the 4-hour chart, we can see the $25 mark preventing further downside, indicating we could see bulls continue higher from there.

Uniswap Price Analysis: UNI retests $25 as support, will it hold?
UNI/USD 4-hour chart. Source: TradingView

Uniswap price action has seen bearish momentum over the past weeks, with large volatile moves taking the market to the $18 low. However, some bullish momentum was seen last week, with a sharp spike higher resulting in the $26 mark reached last Monday.

A retracement to the $22.5 mark followed, where a several-day consolidation was seen during the middle of last week. On Friday, bulls gathered momentum to push higher again, leading UNI/USD to $27 next resistance this time.

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Since then, Uniswap price has slowly retraced and reached the $25 support. If any further downside is not seen, we assume a new higher low is set, and UNI/USD will rally higher later this week from there.

Uniswap Price Analysis: Conclusion 

Uniswap price analysis is bullish today as a new higher low has likely been set at the $25 mark after a slight retracement over the last 24 hours. Therefore, we expect UNI/USD to continue higher later today as a new higher low is likely set. 

While waiting for Uniswap to move further, read our guides on Mycelium Wallet, Next Cryptocurrency to Explode in 2021, as well as our BitMEX review.

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