TradeCityPro | UNI Builds Pressure Below Key Resistance Zone

👋 Welcome to TradeCity Pro!
In this analysis, I’ll be reviewing the UNI coin — one of the notable DeFi tokens, currently ranked 27th on CoinMarketCap with a market cap of $254 million.

⌛️ 4-Hour Timeframe
On the 4-hour chart, as you can see, UNI has formed a bottom around the 6.043 level, which is considered its key support zone. After reaching this level, the price began an upward move, though the trend appears very weak.

✔️ Currently, there’s a resistance zone just above the price that has previously caused multiple rejections. Once again, the price is moving toward this zone.

📊 The volume during this latest upward leg is very low, which is not a good sign for initiating a bullish trend. If the price reaches this resistance level with such low volume, there's a high likelihood of another rejection.

🔽 If that happens, we could consider opening a short position based on this rejection. However, my main trigger level for a short is the break below 6.896 — I personally would wait for this level to be breached before entering a short position.

✨ The next key support, in case 6.896 is broken, is the 6.043 zone. This is a major support level and could serve as the target for the short trade. If this level is broken as well, it could mark the beginning of a strong downward trend.

🔍 On the other hand, if volume starts to pick up and the resistance zone is broken, we could open a long position. The target for this could be around 8.678 — or even a setup in anticipation of a breakout above 8.678.

🔔 Which scenario you choose depends largely on your market perspective. If you're looking for a short-term trade, the first scenario is more appropriate. But if you're aiming for a long-term position with a wider stop loss, the second scenario would be the better choice.

💥 In either of the long scenarios, I strongly recommend confirming the move with volume. For further confirmation, you can also check if RSI enters the overbought zone.

📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️