The Uniswap (UNI) token's recent trading range has narrowed, with Bollinger Bands showing a "squeeze," signaling potential for significant volatility. Coupled with shrinking trading volume, this suggests UNI may be gearing up for a breakout. Investors should monitor the breakout direction closely—upward could target resistance levels, while downward may test key supports. To manage risk, set a stop-loss below the recent low (e.g., 5-10% below entry) to limit downside exposure. For take-profit, consider partial exits at resistance zones (e.g., $6.50 or higher) to lock in gains. Combining technical indicators like RSI or MACD can help confirm momentum. Given the current consolidation, patience is key—await a clear breakout with volume confirmation before acting, ensuring a balanced risk-reward strategy.
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