The currency is going through a "boring accumulation" phase after a strong downward wave that started from the $7 levels. Currently, the price is fluctuating in a very narrow sideways area between $3.00 and $3.25. What is noticeable is the decline in liquidity (Volume) in recent days, indicating that sellers have lost their momentum, and the market is awaiting a spark (news or Bitcoin movement) to explode from this rocky bottom.
Potential price targets
• First target: $3.65 (the nearby resistance level on the 4-hour timeframe).
• Second target: $4.10 (previous breakeven point and high liquidity area).
• Strategic target: $5.50 (closing the large price gap that occurred in February).
Expected timeframe
• First target: within 3 to 7 days (depends on breaking the 3.30 area).
• Second target: from two weeks to a month.
• Strategic target: medium-term (3 - 4 months) linked to the improvement of the general market.
Controversial scenarios
• Positive scenario: Breaking the 3.32 level with a daily candle close opens the door for a significant jump towards $4.50 directly as a price attraction area.
• Cautious scenario: The current volatility requires monitoring the main support areas at 3.11 and 2.95. Breaking the latter means the currency enters a new dark tunnel.
Buying and selling areas
• Buying: The current area (3.15 - 3.22) is considered ideal for 'Spot' accumulation, with additional support in case of a drop to 3.00.
• Selling: Take initial profits at 3.60, and liquidate most positions at 4.10 if you are a day trader.
Golden advice for traders
"Do not sell at the bottoms.. UNI is currently in an exhausted accumulation area for sellers. Patience in these areas is what creates wealth, and remember that the currency is linked to the Uniswap project which is the strongest in its field, so any market rebound will have it at the forefront of the winners. Activate the stop loss below 2.90 and sleep peacefully."
What will happen in the coming days?
We expect the boring sideways movement to continue for the next 48 hours, followed by a false breakout downwards to test the liquidity of the 3.10 area, then a quick and strong rebound that surprises onlookers by breaking the $3.40 level.
