Uniswap just dropped 9% to $6.16 and the 4H RSI at 34.7 is screaming "I'm about to get oversold" — but not yet. 📉
Let me walk you through the setup:
UNI is in a clear downtrend on the 4H timeframe. Price is well below the 7-SMA ($6.52) and 25-SMA ($6.86) — both are now resistance. The MACD histogram at -0.0124 is deeply negative and still expanding, meaning selling pressure hasn't peaked yet.
Volume is declining (0.77x average), which might seem bullish — but in a downtrend, declining volume just means buyers aren't interested. Nobody's catching this falling knife.
The interesting part? On the daily, UNI is still above the 25-SMA ($5.14) and 99-SMA ($3.80). This pullback is happening within a larger uptrend. So there IS a floor somewhere — we just haven't found it yet.
Long/short ratio at 1.52 — retail is very long. Historically, this kind of crowded positioning gets flushed before the real move up.
🎯 Trade Plan (SHORT):
• Entry: $6.044 – $6.274
• Stop Loss: $6.618 (above 4H 7-SMA — clean invalidation level)
• Take Profit: $5.863 → $5.682 → $5.440
Are you buying this dip or shorting the continuation? Drop your thesis below 👇
#Uniswap #UNI #DYOR
⚠️ This is not financial advice. Always do your own research and manage risk accordingly.