Uniswap (UNI) Scalping Strategy: Navigating a Ranging Market with Fibonacci Levels
Disclaimer: This is not financial advice. Please conduct your own research before making any trading decisions.
This analysis explores a potential scalping strategy for Uniswap (UNI) based on technical indicators and current price action.
Market Context:
UNI is currently trading at $11.50 with a 24-hour trading volume of $281 million, experiencing a slight decrease of over 2.19% compared to the previous day.
Both daily and weekly charts suggest a rangebound market for UNI, with a significant gap between $7.69 and $10.38 on the weekly chart.
Scalping Strategy with Fibonacci Levels:
The strategy utilizes Fibonacci retracement levels, a common technical analysis tool, to identify potential entry and exit points.
An alert has been placed at $9.25, corresponding to the 0.5 Fibonacci retracement level of the recent price swing.
Entry Trigger: If the price respects this support level and shows signs of a potential bounce, it could be a potential entry point for a long scalp.
Alternative Entry: A confirmed break below $9.25 and a further decline towards $7.8, the 0.786 Fibonacci retracement level, could present another entry opportunity.
Dollar-Cost Averaging (DCA) Zone: A price drop exceeding $7.8 and reaching the $6.86 zone could be considered a DCA zone for averaging into a position.
Stop-Loss: A stop-loss order placed below $6.12 is recommended to manage potential losses if the price falls sharply.
Target Profit: As a scalping strategy, aiming for a smaller, quicker profit is ideal. Define your target profit level before entering a trade (e.g., $1.30 or a 11.3% increase).
Market Considerations:
- It's important to remember that this is a speculative strategy with inherent risks.
- Market conditions can fluctuate rapidly, potentially invalidating this plan.
- Always prioritize risk management and never invest more than you can afford to lose.