UNI plummets 7%! Smart money is secretly accumulating, the Bollinger Bands reveal a golden pit, is the bottom-fishing opportunity fleeting? 🔥

Technical Analysis

1. Price Status:

• Bollinger Bands: Current price $7.583 is close to the 1-hour lower band ($7.536), deviating from the middle band by 7.19%, oversold signal is significant.

• MA200: Price is 10.34% above MA200 ($6.872), long-term trend remains bullish.

• Holding Cost: Current price is slightly above holding cost ($7.179), 5.6% deviation suggests short-term selling pressure is weakening.

2. Market Strength:

• Trading Volume: 24-hour volume shrank by 8% (volume ratio 0.92), the decrease in volume and price indicates selling exhaustion.

• Open Interest: Contract open interest decreased by 2.79% in 24h, but long-short ratio surged (3.98→4.62), smart money is positioning long against the trend.

• Liquidity: $7.0-$7.3 gathers $724K buyer liquidity, $9.8 has $1.05M seller barrier, forming natural support/resistance.

3. Key Levels:

• Support: $7.3 (dense buyer liquidity area) → $7.0 (psychological barrier + buy order fortress).

• Resistance: $8.18 (Bollinger upper band) → $9.0 (first line of defense for sellers).

Market Cycle

Short-term is at the end of a bullish correction: weekly still up 28.6%, but daily has sharply dropped to the bottom, RSI 34.97 approaching oversold zone, rebound momentum is accumulating.

Trading Strategy

1. Bullish Positioning:

• Entry: $7.35 (relying on $7.3 liquidity support)

• Stop Loss: $7.25 (invalid if it breaks the previous low of $7.3)

• Target: $8.15 (breakthrough of the Bollinger middle band + gap fill)

• Risk-Reward Ratio: 16:1 (calculation formula: (8.15-7.35)/(7.35-7.25))

2. Risk Warning:

• If the U.S. CPI data exceeds expectations negatively, it may break the $7.0 support;

• Position ≤ 2% of principal, avoid trading during low liquidity periods in Asia.

> Summary: UNI has touched the bottom Bollinger lower band with shrinking volume, the unusual long-short ratio suggests a reversal. Current price $7.583, it is recommended to set a long position at $7.35, stop loss at $7.25, target $8.15 (risk-reward ratio 16:1), breaking $7.0 would invalidate the strategy.

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$UNI