$UNI I am leaning towards bearish and the situation looks extremely negative.
Be careful, the price failed to maintain the peak of $4.59 and the rapid return down with open interest remaining high at $71 million means that there are "whales" pushing to sell aggressively.
Proposed trading plan (Scalp Short):
Entry (Sell): from $3.30 to $3.36 (retesting resistance)
Take Profit: $3.22 (previous low), $3.15 and $3.05
Stop Loss: $3.45
Risk management is the most important, and always do your own research (DYOR).
My technical analysis of the situation simply:
I am watching the chart and seeing what is called "violent exit" of liquidity. The price is currently trading below the EMA7 average at $3.358, which means that sellers are fully controlling the market. Any rise currently is just an opportunity to enter sell positions unless we close above $3.40. The critical support now is at $3.219, and once this number is broken, I expect to see a strong acceleration downwards because many "trapped" buyers will have to sell.
Do you think the price will settle with this drop or will we see new lows soon? Share your opinion in the comments.