Uniswap ( $UNI)
1. Identify the pattern
• The chart is forming a symmetrical triangle.
• Current price: ~10.3.
• Moving towards the end of the triangle → a strong breakout is likely to occur.
• Volume is gradually decreasing, consistent with the 'compression' characteristic of the triangle.
2. Investment scenarios
(a) Bullish scenario:
• If the price breaks above the upper edge (~11 – 12 USDT) with high volume → bullish signal.
• Short-term target: 15 – 18 USDT.
• Medium-term target: 22 – 25 USDT (previous resistance area).
• Strategy: Consider buying when the breakout is confirmed (closing candle on D above 11 – 12).
(b) Bearish scenario:
• If the price breaks below 9 USDT → possibility of returning to test the support area of 6 – 7 USDT.
• If it breaks the strong support at 5 USDT, a deep downtrend could bring the price to 3 – 4 USDT.
• Strategy: Consider cutting losses if it breaks the support area of 9 – 9.5 USDT.
3. Risk management
• Set stop loss below the important support (8.8 – 9.0 USDT).
• Should only allocate 20 – 30% of the account to the breakout area, not all-in.
• Can DCA (dollar-cost averaging) if believing in the medium-term uptrend.