The Uniswap price popped during the weekend in the aftermath of last week’s cryptocurrencies ban by the Chinese government. UNI has risen by more than 30% in the past 24 hours, bringing its total market capitalization to more than $15.33 billion.
Uniswap and China ban
Cryptocurrency prices crashed sharply on Saturday after China announced a ban of cryptocurrencies. The announcement made by the People’s Bank of China (PBOC) meant that all crypto transactions will be deemed illegal in the country. That includes mining, derivatives trading, and other activities as well.
The announcement was relatively negative for cryptocurrency prices because of the significant role that China plays in the global economy. It has a large population and a fast-growing middle class.
However, the implications of the new ban will be limited since the country had already banned the currencies before. Also, many financial institutions in the country don’t accept any crypto transactions today.
As a result, many cryptocurrency exchanges like Binance and Huobi announced that they will stop offering cryptocurrency services in the country.
Therefore, the Uniswap price is jumping because investors believe that the announcement will lead to more transactions in its ecosystem. That is because Uniswap is a decentralized exchange that is not controlled by anyone. As such, there is a possibility that more Chinese will keep using the platform to trade. Its total value locked has jumped by more than 6% to more than $6 billion.
Uniswap price prediction
The daily chart shows that the UNI price has jumped in the past two straight days. It is trading at $24.95, which is about 40% above the lowest level on Friday. It has moved slightly above the 25-day and 50-day moving averages while the MACD has formed a bearish divergence pattern.
Therefore, while the overall outlook is bullish, there is a possibility that the price will pull back in the near term as investors take profits. Besides, it has already formed a double-top pattern at $31.45.