Technical analysis by DreamAnalysis about Symbol UNI: Buy recommendation (10/8/2024)

✨ Welcome to Today's Uniswap (UNI) Futures AnalysisIn this analysis, I’ll be examining the UNI token, highlighting potential entry and exit points for futures trading based on both daily and 4-hour timeframes.🥸 About Uniswap (UNI)Before diving into the charts, here's a quick overview of Uniswap. As one of the largest decentralized exchanges (DEX) in the DeFi ecosystem, Uniswap operates on Ethereum and its layer-2 solutions, facilitating asset swaps and enabling users to earn through liquidity provision. The platform's native token is UNI, which I'll be analyzing today.📅 Daily Timeframe AnalysisOn the daily chart, UNI hit a peak of $15.398 before beginning a downtrend, culminating in two major bearish waves that brought the price down to $5.59 support. Throughout this decline, volume steadily decreased, with a notable high-volume selloff candle at $5.59 signaling the start of a corrective phase. The price then climbed to the $7.667 resistance, where it was rejected once but is currently making another attempt to break through.📊 Concerns Around Decreasing VolumeA key issue during this phase is the declining volume on both buying and selling sides, suggesting a lack of active participation from both bulls and bears. This may indicate that large investors or "whales" are temporarily pulling funds from UNI, reducing its attractiveness for spot buying.🔽 Stop-Loss Strategy for Existing HoldersFor current holders looking to manage risk, I recommend setting a stop-loss if the price falls below the $5.59 support level. A close below this zone could lead to further declines toward $4.816 and $3.868. Personally, I would trigger my stop-loss on a confirmed candle close below $5.59.📈 Futures Trading TriggersFor futures trading, a breakout above $7.667 could be a good long entry trigger, with targets at $8.668 and potentially as high as $11.983. If the RSI moves into overbought territory and holds, we might see a strong price surge as market excitement builds.📉 Short Position TriggersOn the short side, a break below $6.369 is a valid trigger, as this level has been tested twice before. A third touch and break could offer a solid opportunity for momentum traders. Another short trigger lies at $5.59, and if the price settles below this level, a sharp drop may follow.⏳ 4-Hour Timeframe AnalysisIn the 4-hour timeframe, UNI has been trading within a range of $5.59 to $7.829. Trading within this box requires careful risk management, as the price could move unexpectedly before a position is activated.📈 Long and Short Triggers on the 4-Hour ChartFor long positions, a break above $7.387 within this range is a suitable trigger, targeting the top of the box. On the short side, a break below $6.511 would be a valid trigger, aiming for the bottom of the range.📝 Bullish Momentum PrevailsCurrently, bullish momentum is stronger than bearish, as reflected in Bitcoin’s price action. As long as Bitcoin maintains its upward trend, I prefer focusing on long positions over short ones in UNI futures.❌ DisclaimerThis analysis represents my personal opinions and is not intended as financial advice. Please conduct your own research before making any trading decisions.