- UNI/USDT pair shoots up to $26 in a 32% intraday rally.
- New product updates from the Uniswap development team fuelling the rally.
- Also, the Chinese crypto ban forcing users to switch from centralized exchanges to DEXs.
- UNI is trending in overbought territory.
JAIPUR (Coinchapter.com) – Uniswap’s native token UNI registered 32% gains to log a local high of $26 on Monday.
Bullish sentiment returned to UNI markets after the team released a slew of new updates to improve the Uniswap ecosystem. Plus, the draconian crypto ban in China forced traders/investors to look for DEX alternatives. As a result, the leading Ethereum-based DEX captured the lion’s share of the incoming traffic.
From Alpha To Beta
Uniswap announced the up-gradation of the platform’s V3 deployments on Optimistic and Arbitrum from Alpha to Beta.
The updated deployments would provide users with options to choose from a list of supported networks. These would be available through the network selector dropdown in the Uniswap App. Also added are fast confirmation UX and downtime detection features to prop up the user experience.
Although the ascent in UNI/USDT prices wasn’t significant on the announcement, the same led the pair to enter a bullish accumulation phase.
Uniswap Now Supports EIP-1559
Uniswap incorporating Ethereum’s EIP-1559 upgrade further supplied bullish fuel to UNI.
“The app now sends a type 2 transaction to nudge your wallet to choose the optimal Base Fee and Priority Fee for your transaction. Since the EIP-1559 launch, 43,577 ETH has been burned by transactions interacting with the Uniswap Protocol.”EIP-1559 Support, Uniswap Product Update #2
Surge In DEX Usage Due To Chinese Crypto Ban
China’s draconian stance on all things cryptocurrency has led crypto users in the country to tap exchanges that function without any third-party intermediaries.
“Ironically, China exchange ban will cause massive growth in DeFi, triggering the next wave. Buying the dip.”said Crypto.com CEO Kris
“China + websites ban = VPN spike China + crypto ban = DeFi spike”observed Lex Moskovski, CIO of Moskovski Capital
As a result, native tokens of DEXs such as Uniswap, SushiSwap, and dYdX logged impressive double digital gains over the weekend.
Leading the pack with $1.83 billion worth of daily trading volume was UNI. Bullish daytraders bought the token en-masse to capitalize on Uniswap’s surging demand. Consequentially, the UNI/USDT pair broke out of its Descending Channel setup, which had restricted upside price action since September 2.
UNI/USDT Technical Setup
The UNI/USDT pair broke out of its near-month-long bearish trend. But the latest rally led the pair to enter into the overbought territory. In addition, the relative strength index (RSI) number shot up from 27.95 to 70.98, inducing unsustainable vibes in the run-up.
Bears assessed the overbought scenario to trigger immediate profit-taking but faced tough resistance from bulls. Nevertheless, buying pressure looks strong, with long-term investors anticipating further gains for UNI/USDT.
For Uniswap’s native token to resume a sustained uptrend, buyers must aim for UNI to close above $28.2. A move above $31.3 will open the gates towards $41.6. However, if the bears take over, a drop to $21.78 is very much a possibility.