Why Is Uquid Coin (UQC) Price Pumping? Is It Good For Trading?

The price of Uquid Coin (UQC) has seen intense volatility recently, with the token surging 382% in a single day yesterday before retracing 53%. But what is causing this massive price swing, and does it present a good trading opportunity?

What is UQC?

UQC is a decentralized digital currency built on the Ethereum blockchain as an ERC20 token. Its purpose is to power the UQUID ecosystem, allowing token holders to easily convert their UQC to fiat cash and power loyalty programs and shopping rewards through smart contracts that generate new tokens with each purchase.

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Sudden Price Spike and Retracement

According to technical analysis, the huge price swing occurred within just two 1-hour candles yesterday. The price rapidly rose from $5.8 to over $28 before crashing back down to around $13 – all within a 2 hour period.

This is abnormal volatility even for crypto, as UQC has tended to trade sideways for long stretches followed by sudden price spikes and harsh rejections back down.

Implications for Traders

There are several implications of this price action that traders should keep in mind:

  1. The rapid surge and fall suggest the price increases are not sustainable in the short term. Further retracement from the overbought RSI levels could occur.
  2. UQC lacks trading liquidity due to low activity and volume. This can exaggerate price movements and make entering/exiting trades more challenging.
  3. The dominance of sideways choppiness outside of temporary spikes means timing entries and exits is critical to avoid buying “fake breakouts” and selling prematurely.

So while the UQC price action can seem attractive on a surface level, traders need proper risk management, patience, and care not to be caught on the wrong side of its sharp volatile swings according to the assessment. Until more consistent trends emerge, caution is warranted despite the potential for more episodic rapid gains.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

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