Uniswap Price is Up by 14.47% – Time to Buy UNI Coin?

Popular autonomous market maker (AMM) UniSwap has been on a tear since the early hours of today. Although the crypto market has seen a lull in activity following the announcement of China’s crypto ban, decentralized exchange (DEX) platform UniSwap has seen a spike both in network traffic and in value.

UniSwap: Enabling Decentralized Token Swap

Based on the Ethereum blockchain, UniSwap is a DEX protocol that enables the rapid exchange of decentralized finance (DeFi) tokens. The platform, launched in 2018, gained popularity following the boom of DeFi in 2020.

Riding on the success of the sub-sector, UniSwap snatched a large share of the DeFi token swap market becoming the top destination for DeFi users. Running entirely without any central authority, UniSwap enables users to convert tokens without being subjected to know-your-customer (KYC) protocols like centralized exchanges.

Aside from facilitating token swaps, UniSwap also addresses the issues surrounding liquidity flow in DeFi solutions. UniSwap launched its UNI token in September 2020 and this ERC-20 token serves as the governance token for the protocol.

UNI Price Surging Following China’s Crypto Ban

The crypto market has seen an admixture of bulls and bears trying to gain the upper hand in the market. However, following a remarkable bull run starting from early August, the nascent industry has hit a snooze button with the market shedding 4% of its total value as the bears regain control.

This dip is attributable to the Chinese government which recently issued its toughest anti-crypto enforcement since 2017. According to the People’s Republic of China, all cryptocurrencies were banned from the Asian giant. Following the announcement, centralized exchanges Binance and Huobi Global have stopped serving customers from the region with the latter noting that it will wrap up its operations on Dec. 31.

This has forced Chinese crypto investors to shift to DEX platforms like UniSwap, SushiSwap, and 1Inch with all DEX protocols recording major price gains in the sequel to China’s ban.

UNI climbed 40% following the announcement, although it has since slumped, with the other protocols making similar leaps. At press time, UNI has continued its upward surge and rose 14.47%, with a price valuation of $23.64. This significant rally in a bear season could be a signal to buy UNI.

UNI Technical and Fundamental Analysis

The ERC-20 token still has a lot to prove and this has seen it trade close to the 20-day moving average (MA) support price of $23.01. However, it is currently bullish and has trades pick up could surge to a higher value. The relative strength index (RSI) figure of 50.46 shows a healthy interest in the token and indicates investors are out to buy UNI. Fundamentally, UniSwap is seeing major integrations as AI and blockchain firm Quasa Chain protocol recently listed on the exchange.

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