Join Our Telegram channel to stay up to date on breaking news coverage
Uniswap price, just like stock and commodity prices, hit the lowest mark this year following protests in China, a top importer, over strict Covid-19 curbs that have fueled demand worries. China’s zero-Covid policy and broader economic circumstances could be weighing on currencies that ought to be benefitting from higher commodity prices.
Amidst the current protests in China against tight Covid-zero mobility restrictions, digital assets including Bitcoin (BTC) and Ethereum (ETH) suffered severely during the Asian trading sessions on Monday, going down 3.2% and 4% respectively. At the time of writing, the native token of the popular decentralized exchange Uniswap, UNI was trading at $5.46 according to data from CoinGecko.
Accordingly, an ‘inside joke’ among renowned crypto personalities ensued about a possible insolvency of ‘wrapped Ethereum’ (wETH) allegedly causing massive sales of Ethereum and other tokens after the news hit Twitter.
Crypto markets are not the only sector suffering in the aftermath of China’s zero-Covid strategy because even Asian stocks and US equity futures also experienced a dip.
China’s Zero-Covid Policy
Initially, China was successful in controlling the Covid 19 pandemic but after the emergence of the more transmissible variants and the consequent spread of the outbreak, the country had to double down on its efforts, taking a ‘Zero-Covid’ approach.
The populous country’s strategy of controlling Covid-19 with lockdowns, mass testing and quarantines has provoked one of the greatest shows of public dissent against the ruling Communist party in decades. Even Global health pundits have criticized China’s methods as unsustainable, following an incident where 10 people died in a fire on Thursday in Urumqi, a city in Xinjiang where some residents have been under lockdown for over 100 days.
With visuals jarring and thousands taking to the streets over the weekend, this has been the biggest challenge to the leadership of the Chinese Communist Party in years. Accordingly, there is fear across global markets over worries that the Chinese authorities will take longer before reopening the world’s second–largest economy.
Uniswap Price Follows Slide in Asia Equity Markets
Crypto asset prices sank again on Monday, November 28 even as Binance, the largest exchange in the industry, tried to restore investor trust by campaigning for greater transparency for its platform in light to the FTX saga. During the weekend, Binance CEO Changpeng Zhao assured that the exchange had sufficient Bitcoins on hand to meet customer redemptions and that anyone could track its reserves on a new website.
However, Kraken co-founder and CEO Jesse Powell tweeted on Saturday that Binance’s statement of assets was ‘pointless’ without showing liabilities.
I'm sorry but no. This is not PoR. This is either ignorance or intentional misrepresentation.
The merkle tree is just hand wavey bullshit without an auditor to make sure you didn't include accounts with negative balances. The statement of assets is pointless without liabilities. https://t.co/b5KSr2XKLB
— Jesse Powell (@jespow) November 25, 2022
Stock exchanges across Shanghai and Hong Kong closed lower, the same case for those in Japan and Australia. Asian equity markets fell, with Hong Kong’s Hang Seng Index dropping 4% at the opening and closing off 1.57% on Monday. The Shanghai Composite Index ended 0.75% lower, while Japan’s Nikkei 225 Index lost 0.42%. Investor concerns quickly spread to the west, with European stocks down at the open and U.S. futures dropping.
China’s zero-Covid policy could be weighing on currencies across the globe, adding to the worsening situation that was caused triggered the FTX collapse that sent shock waves across the whole crypto sphere.
Uniswap Price Bulls Overtake Bears Momentum Pushing UNI Above $5.40
Decentralized finance (DeFi) has come into existence with the concept of no intermediaries. The sector is going mainstream in the industry, as investors now evaluate digital assets on the basis of their total value locked (TVL), amongst other factors.
Uniswap, a renowned blockchain project in the DeFi space aims to bring greater decentralization. The protocol’s native asset, UNI, is under the active consideration of marketers.
The past few days have been extremely volatile, which resulted in successive lower highs for Uniswap price, resulting in a continuous bearish trend characterized by a decreasing trendline as shown on the daily chart (below). At the $5.449 level, UNI has climbed 4.4% in the last 24 hours and 5.8% gain over the past 7 days.
UNI/USD Daily Chart
The daily price analysis for UNI is showing a small increase in the price today, as bulls fight to sustain the current momentum. The price has risen to an intraday high of $5.449, with the past few hours being crucial for UNI, as bulls strive to prevent the bears from regaining control amid the volatile market.
UNI had almost breached resistance from the descending trendline which has been rejecting the price for the past few days. Bulls have to push the price from the current level above the resistance line to sustain the ongoing recovery.
The first line of resistance stands at the $5.70 level, and breaching this would help the altcoin climb to the psychological level of $6.0. Rising higher than that will clear the path for Uniswap to rise toward the $6.22 level, where all the major simple moving averages appear to converge. Such a move would represent a 14.28% increase from the current price.
This positive outlook is validated by the upward movement of the relative strength index (RSI), suggesting that the bulls have started coming back to the scene. In addition, the hidden positive divergence from the RSI as shown on the chart above is an indication that the buyers have not given up on their attempt to push the UNI price higher.
On the downside, the RSI is still positioned in the negative region and the price strength at 40 shows that the sellers are still more than the buyers. The RSI also adds credence to the sell-off thesis as the amount of UNI traded in the last session increased, showing increased demand.
Note that Uniswap has to flip the critical resistance at $5.70 into the support zone to move up to its next price ceiling of $6.0. Therefore, if the UNI price fails to sustain above $5.449 or is rejected from the roadblock at $5.50, then it could lose drop to the support floor at $5.267. A drop further could see the altcoin drop lower to seek solace from the $4.88 foothold, invalidating the bullish thesis and bringing the coin down to the next level.
As regards buying strength, Uniswap price was trading below the 50-, 100-, and 200-day SMAs, meaning that the price faced stiff competition on the upside. For the bulls to register a considerable upswing price has to flip these SMAs back into support.
At the moment, it is safe to say that UNI has not yet broken free from the grip of the bears.
Other Tokens To Consider
Amid market fears and anxiety because of macroeconomic activities, investors are looking for other places to invest their money and hopefully make a profit. Here is a list of promising projects that may give value for your money.
RobotEra
RobotEra is a project building a sandbox-like planet-rebuilding metaverse where users become robots in the virtual world and manage their own land while participating in the creation of the world. The robots are also able to acquire resources from the land, create robot companions, and many other real-life activities.
Get in early on the RobotEra pre-sale by buying the $TARO token now. The $TARO token is the currency that powers our multiverse and is already dubbed one of the hottest pre-sales of 2022. You can buy directly with your USDT, or you can buy with the ETH in your wallet. After the public pre-sale ends, you can use the claim page to claim your purchased TARO.
Dash 2 Trade (D2T)
With more than $2.1 million raised in a little over a week during the Dash 2 Trade presale, the D2T trading intelligence platform is well on its way to having one of the most successful token sales in 2022. The roadmap of the project and its sales series from stage one to stage two, at which time the price of D2T increased from 0.0476 to 0.05 USDT, has a lot of discernible impact on the rate at which it is proceeding.
Dash 2 Trade, based on the Ethereum blockchain intends to provide its customers with a variety of real-time analytics and social trading tips. The project has received a significant vote of confidence based on the total amount it has been able to generate thus far.
It intends to launch its platform in the first quarter of 2023, which is also the time when it anticipates its D2T cryptocurrency will receive its first exchange listings.
Read More:
Join Our Telegram channel to stay up to date on breaking news coverage
