Does UNI make a comeback after a sharp decline? RSI Extremely Oversold Ignites FOMO Buying Wave, $7 Level Becomes a Golden Bottom Point!
Summary
Current price of UNI is 7.061, a drop of 8.54% in 24 hours, RSI 12.63 (extremely oversold) and Bollinger Band position at 20.5% (near the lower band), indicating a rebound opportunity after a significant drop. The order book shows strong buying pressure (buy/sell ratio of 1.84x), and a short-term rebound may reach the resistance level of 7.65. It is recommended to buy on dips, entry at 7.06, stop loss at 6.8, target 7.65, with a risk-reward ratio of 2.26. However, the risk is high: insufficient trading volume (24-hour volume ratio of 0.83), negative funding rate (bearish dominance), and if it breaks below the support of 6.8, the strategy will fail.
Technical Analysis
• Price Status: Bollinger Band position at 20.5% (near lower band), MA200 deviation -5.39%, holding cost deviation -5.09%, all indicating oversold conditions, high probability of a rebound.
• Market Strength: 24-hour trading volume ratio of 0.83 (slightly below average), price decline without increased volume, major players may be accumulating; open interest continues to decline (24h -6.98%), smart money long-short ratio worsened (from 4.28 to 3.35), bearish dominance but weakening; no major news, the market has digested the downward trend.
• Key Support/Resistance: Support at 6.8 (buy-side liquidity 269k USDT), resistance at 7.65 (sell-side liquidity 204k USDT); nearby buy orders valued at 402k USDT > sell orders 236k USDT, strong short-term upward momentum; liquidity gap at 6.8-7.0, if broken, may accelerate downward.
Market Cycle Analysis
Currently at the bottom of a bear market (price below MA200 and holding cost, RSI oversold), but the buying pressure in the order book suggests a nascent rebound, if it breaks 7.65 or transitions to a consolidation phase.
Trading Strategy
• Entry Point: 7.06 (current price, starting point for oversold rebound).
• Stop Loss Point: 6.8 (strong support level, breaking below reverses the trend).
• Target Point: 7.65 (first seller resistance zone).
• Risk-Reward Ratio: 2.26 (Long direction, calculated by formula).
• Risk Warning: Market risks include low trading volume and negative funding rates amplifying volatility; the condition for strategy failure is a price drop below 6.8; position size ≤ 2% of total capital when operating, avoid low liquidity periods (e.g., Asian session).
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