The Uniswap price saw a rush of buying over the weekend as investors bet that UNI may benefit from China’s crypto Crackdown. Whilst most cryptocurrencies digested the Chinese government’s latest assault on digital assets, Uniswap took off like a rocket, jumping 50% in two days.
On Friday of last week, the People Bank of China (PBoC) reiterated their stance that all crypto-related activities are banned. Subsequently, the two largest crypto exchanges, Huobi and Binance, immediately suspended all new users from mainland China. As a result, their respective native tokens suffered substantial losses. Although capital fled centralized exchanges, their decentralized counterparts caught a bid as traders read the ban as a bullish catalyst.
The daily chart shows that yesterday’s extension of Sunday’s rally took the Uniswap price to $26.26, just short of the 200-day moving average at $26.79. The rejection drove UNI lower, registering a 14% loss on the day, falling below the 100 DMA at $22.86. Subsequently, the 200 DMA remains the most significant resistance level.
Presently, the Uniswap price is grappling with the 100 DMA at $22.80, which could dictate the immediate direction. If UNI closes above $22.80, it may retest the 200 DMA in the coming sessions. However, if Uniswap ends the day below $22.80, the 100 DMA adds to the price resistance. In that event, Sunday’s $17.00 low comes into view.
For more market insights, follow Elliott on Twitter.