Trading volume on dYdX has skyrocketed to $6.5 billion.
Likewise, the DYDX/USD trading pair has recorded a new all-time high.
Uniswap has also posted significant gains over the past few days.
Share this article
The decentralized exchanges dYdX and Uniswap have jumped in value after experiencing a significant increase in trading volume following China’s latest announcement of a crackdown on virtual assets.
Chinese Investors Look for Shelter
China wants to crack down on crypto, and decentralized exchanges are reaping the benefits.
Last week, the People’s Bank of China (PBOC) announced that it would be tightening its stance on cryptocurrencies. The news generated panic among investors, resulting in $450 million in liquidations worth of long and short positions within minutes.
Huobi and OKEx’s tokens took the biggest hit, given their strong roots in China. Both assets saw their market valuation plunge by more than 40% but have partially recovered since then.
On the other hand, decentralized exchanges (DEXs) have significantly benefited from the update. Market participants appear to have rushed to these trading platforms as they allow permissionless cryptocurrency trading without relying on an intermediary.
On Sep. 27, the overall trading volume on non-custodial decentralized exchange dYdX surpassed that of the largest U.S.-based centralized exchange – Coinbase. On-chain data shows that trading volume in the last 24 hours has hit $6.5 billion. Likewise, exchange activity on Uniswap has increased to over $1.2 billion.
The sudden usage spike on dYdX and Uniswap has helped boost the prices of their native tokens. The DYDX/USD trading pair has recorded a new all-time high of $22.70 in the last few hours, equating to a market cap of around $1.1 billion. Meanwhile, UNI has tapped the $26 resistance level following a 30% upswing.
DYDX and UNI Encounter Resistance
DYDX appears to have reached a major obstacle after surging by more than 90% in the last three days. The combination of the Tom DeMark (TD) Sequential’s breakout line and the 141.4% Fibonacci retracement level at $21.70 appears to be acting as a stiff resistance. Therefore, only a 12-hour candlestick close above this barrier is likely to lead to a new all-time high of $26.20.
Failing to overcome this interest area could result in a brief correction toward $18.50 before the uptrend resumes.
Uniswap has also approached a significant resistance barrier as it remains contained within a parallel channel.
Whenever UNI rises to this technical formation’s upper boundary, it gets rejected and retraces to the pattern’s lower edge. From this point, it tends to rebound, which is consistent with the characteristics of a parallel channel.
Now that Uniswap has risen to the channel’s upper trendline, it could get rejected and retrace towards the lower edge. The downswing from the current price levels would represent a 30% correction to $16.70.
Still, UNI could slice through the $25 resistance level and jump to $31.40 if buying pressure increases.
After the substantial gains DYDX and UNI have posted within such a short period, patience is vital for investors. The sudden spike in trading volume on both of these DEXs suggests that the utility of their native tokens is increasing, which is a bullish sign. However, only a decisive close above their respective resistance levels is likely to determine whether the assets are primed for further gains.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
The People’s Bank of China Crypto Crackdown Continues
The People’s Bank of China has released a notice declaring that the exchange of virtual currencies is now strictly prohibited in the country. Chinese authorities have also introduced stricter surveillance…
dYdX Airdrops New Governance Token to 64,000 Users
The popular on-chain trading platform has finally released its governance token. The protocol is rewarding past users with an airdrop of the token DYDX. Rewarding dYdX Users dYdX is one…
$25M Uniswap Proposal Sparks Another Governance Controversy
A controversial new governance proposal is up for a vote on Uniswap. The proposal would allocate $25 million worth of UNI tokens to the crypto data analytics firm Flipside Crypto….
Efficient Market Hypothesis: Does Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept in financial economics which states that security prices reflect all the available information about a financial instrument. EMH is one of the…