Unibase (UB) jumped 11% in the latest trading session, driven by a wave of short liquidations that caught bearish traders off guard. The move comes as the token tests a key resistance level, though trading volume fell sharply.
Why the Short Squeeze Hit
The price spike was fueled by massive short liquidations. As UB climbed, traders who had bet against the token were forced to buy back positions, adding more upward pressure. Open Interest — the total value of outstanding futures contracts — is rising, suggesting new money is flowing into the market rather than just covering old shorts.
Volume Drops Despite Price Jump
Despite the 11% gain, trading volume dropped 39%. That divergence often signals a lack of broad conviction behind the move. A price increase on falling volume can be fragile — if the buying pressure from the squeeze fades, the token could quickly give back gains.
The Resistance Level in Focus
UB is now testing a critical resistance level. The exact price point wasn't disclosed in the data, but traders are watching closely. A break above could open the door to further upside; a rejection might trigger another round of selling. The rising Open Interest adds to the tension — if the level holds, those new longs could become trapped.
The next few trading sessions will be decisive. If UB can push through resistance with renewed volume, the short squeeze could extend. If not, the lack of buying interest might leave the token vulnerable. Traders are watching whether the token can sustain above that level in the next session.
