Uniswap (UNI) prices showed a sharp rise after last week’s crash following China’s decision to bolster its rhetoric against Bitcoin (BTC) and cryptocurrencies.
The UNI price rose 14.90% on Monday, reaching a high intraday of $ 26.26. The UNI / USD rally came the day after it fell to a monthly low of $ 17.63. As a result, over the last 24 hours it has generated more than 48% of the profit for buyers by mistake.
UNI acts as a control symbol in the Uniswap decentralized exchange (DEX). As a result, owners can vote on issues that help shape the future of the DEX platform.
In addition, UNI owners can also receive a potential share of future income. First, the Uniswap Corporate Governance Contract contains a so-called “salary transfer”; If enabled, it will allow UNI holders to earn a portion of the protocol fee.
Some users already generate revenue by contributing to Uniswap’s asset pools, earning between 0.05% and 1% of the value of each trade in the current version.
Uniswap liquidity pool system. Source: Uniswap official documentation page
Therefore, the potential for Uniswap to grow as DEX may also imply a higher UNI adoption curve. China’s growing attacks on the cryptocurrency industry appear to have increased the symbol’s appeal among speculators.
The People’s Bank of China (PBoC) and other government agencies ruled that cryptocurrency transactions were illegal in a statement on Friday. In the meantime, they have also targeted offshore cryptocurrency exchanges, warning that it is illegal to offer online trading services to Chinese citizens.
The measure closed a loophole left after the People’s Bank of China (PBoC) banned all regional financial institutions from offering services to crypto firms. During this time, Chinese traders continued to use third-party crypto-exchange platforms such as Huobi, Binance and OKEx.
But decentralized trading platforms like Uniswap are trying to avoid state jurisdiction by replacing the custodian model with a non-security model based on smart contracts and multisig technology.
As a result, the recent increase in purchases in the Uniswap market has coincided with similar gains for the major competing DEX tokens, as shown in the Messari index below.
Uniswap and SushiSwap (SUSHI) have pushed DEX up over the last 24 hours. Source: messari
Overall, the DEX of 60 assets was up 10.27% around 12:05 UTC, calculated on a changed 24-hour time frame. Meanwhile, 13 key exchange tokens, including Binance Coin (BNB) and FTX token (FTT), achieved only 0.77% in the same period, indicating a sudden abandonment of traders by their DEX competitors.
Central exchange of tokens in the last 24 hours. Source: messari
The UNI price trades lower within a parallel downtrend channel, which seems to be the classic handle and the technical pattern.
Setup occurs when the asset forms a round bottom (bowl), and corrects after a strong pull up. After the formation is complete, it tends to fall within the area of the downtrend channel, which usually leads to an upward eruption.
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By rising in this way, the asset sets its upward dimension at a distance equal to the depth of the cup.
The daily UNI / USD price chart shows a cup and a handle. Source: TradingView
UNI identifies almost all the cells when the cup and handle pattern is formed in the last sessions. Uniswap now sees an eruption of the handle’s downward channel area with a profit target set at $ 17.83 above the resistance level of $ 48.54.