Uniswap (UNI) prices staged a solid rebound after crashing concluding week in the wake of Mainland china'south decision to intensify its anti-Bitcoin (BTC) and cryptocurrency rhetoric.

UNI price gained 14.90% on Monday to reach an intraday high of $26.26. UNI/USD's climb came a 24-hour interval after it dropped to a monthly low of $17.63. As a result, it churned out more than 48% profits for the dip buyers within the concluding 24 hours.

Adoption FOMO

UNI serves every bit a governance token within Uniswap'south decentralized exchange (DEX) ecosystem. As a effect, its holders become to vote on matters that help steer the future direction of the DEX platform.

Additionally, UNI holders could as well receive a potential revenue share in the future. For the uninitiated, Uniswap'southward governance contract contains a and so-called "fee switch"; if activated, it will enable UNI holders to earn a part of the protocol'southward fees.

Some users already generate revenues by contributing to Uniswap'due south pools of assets, earning between 0.05% and 1% of the value of each trade in the current version.

Uniswap's liquidity pool schematic. Source: Uniswap Official Doc Folio

Therefore, the prospect of Uniswap growth as a DEX could as well mean a higher adoption curve for UNI. And so it appears, China'south intensifying crackdown on the crypto industry has boosted the tokens appeal amid speculators.

The People'south Bank of China (PBoC) and other government agencies deemed crypto transactions illegal in an announcement made public on Fri. Meanwhile, they also targeted offshore cryptocurrency exchanges, alarm that it is illicit to provide online trading services to Chinese residents.

The move served to fix a loophole that remained in place after the PBoC banned all regional financial institutions from offering services to crypto companies. During this time, Cathay-based traders had connected to utilize off-shore cryptocurrency trading platforms, such equally Huobi, Binance and OKEx.

Just decentralized trading platforms like Uniswap are attempting to steer articulate of governmental jurisdictions by replacing the custodial nugget model with a non-custodial one based on smart contracts and multi-signature applied science.

As a consequence, the recent bout of ownership in Uniswap markets has appeared in sync with similar rallies across its top rivaling DEX tokens, every bit shown in the Messari index below.

Uniswap and SushiSwap (SUSHI) has led DEX gains in the previous 24 hours. Source: Messari

Overall, the DEX index containing threescore assets was up ten.27% effectually 12:05 UTC, calculated on a 24-60 minutes adapted timeframe. Meanwhile, the gains of thirteen centralized commutation tokens, including Binance Coin (BNB) and FTX Token (FTT), came out to exist only 0.77% in the same menses, suggesting traders' sudden FOMO for their DEX rivals.

Centralized commutation tokens in the previous 24 hours. Source: Messari

UNI technicals

UNI prices accept been trading lower inside a parallel descending channel that appears to be the "handle" of a classic cup-and-handle technical blueprint.

The setup emerges when an asset forms a rounding bottom (cup) while correcting after a solid move college. Afterward completing the germination, it trends lower in a descending channel range — which typically leads to a breakout to the upside.

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In rising and so, the asset sets its bullish target at a distance equal to the cup's depth.

UNI/USD daily toll chart featuring the cup and handle pattern. Source: TradingView

UNI ticks about all the boxes when forming the cup-and-handle design in recent sessions. The Uniswap token is now eyeing a breakout from its descending handle channel range, with a profit target gear up at $17.83 in a higher place the cup'due south resistance level at $48.54.

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