UNI surges 6%! RSI overbought alert, is it time to chase highs or short? Seize the opportunity to avoid FOMO!
Current price of UNI is 7.34, up 6% in 24 hours, RSI 69.7 nearing the overbought zone, technical analysis shows high risk of short-term pullback. It is recommended to short in the short term, entry at 7.34, stop loss at 7.40, target at 7.15, risk-reward ratio 3.17. Risk: strong liquidity resistance, if it breaks 7.40 then the strategy is invalid, position control 2%.
Technical analysis:
• Price status: Bollinger Bands position 93.8% (near upper band 7.38), overbought signal; MA200 (7.15) deviation 2.7%, bull market continues; holding cost (7.14) deviation 2.9%, strong support.
• Market strength: 24-hour trading volume increased by 2.6 times, coupled with a 6% increase, showing major buying; but 4-hour positions increased by 18.1% accompanied by short positions increasing (-3.7%), divergence risk; no significant news impact.
• Key support/resistance: Support at MA200 (7.15) and buyer liquidity zone (7.1); resistance at Bollinger Bands upper band (7.38) and seller liquidity zone (7.78); buying pressure ratio 1.29 (buying dominant), but the total value of sell orders in the far zone is high (418k USDT), liquidity gap at 7.4-7.78 easily triggers a pullback.
Market cycle analysis:
Mid-bull market, but RSI overbought indicates top risk, trend sustainability is weak.
Trading strategy:
• Entry: 7.34 (pressure in overbought zone).
• Stop loss: 7.40 (slightly breaking upper band).
• Target: 7.15 (support level).
• Risk-reward ratio: 3.17 (calculated for short direction).
Risk warning:
• Market risk: RSI overbought pullback, position divergence, macro event impact.
• Strategy invalidation: Price breaks 7.40 or drops below 7.10.
• Operation: Position ≤2%, avoid low liquidity periods (such as Asian session).
Like and follow for real-time updates, welcome to leave messages to discuss strategy details!