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UMA Technical Analysis: Bulls Losing Power May Lead to Another Hill Formation, Pivot Point at $19.24

source-logo  cryptoknowmics.com 12 November 2021 07:55, UTC

UMA, or Universal Market Access, is a protocol for the creation of synthetic assets based on the Ethereum (ETH) blockchain. UMA was launched in December 2018. The main idea behind Universal Market Access is reflected in its name: by developing a protocol for the creation of synthetic assets and financial contracts on the blockchain. Also, it seeks to democratize and decentralize the financial derivatives market.

Let us see what the technical analysis holds for UMA.

Past Performance

The coin has been rising for the last five days owing to the launch of its ‘Across’ protocol. The current price gain of the Ethereum token seems to directly correlate with the number of assets held on UMA protocol UMAverse.

On November 5, 2021, trading began at $11.77. Looking at the price movements in the past week, despite being volatile, there was a significant increase in the price. It closed on November 11, 2021, at $19.44, after a weekly change of 65.16%

Source: https://www.tradingview.com/x/dxIszuZh/

UMA Technical Analysis

The market today is showing that the bulls are losing power while bears are taking control of the market. This may lead to another hill formation just like the previous week, as the current trading price of UMA is 5.35% down than yesterday’s close. However, let us look at the indicators first.

The OBV works by keeping a running tally of volume in accordance with the direction of crypto. Thus, the OBV is showing that traders may take a short position. This is because the selling volumes are dominating, which is putting pressure on the price to move further down.

The RSI had briefly entered the overbought region yesterday, and it is again out of it. Currently, it is at 68.69%. This again shows that the market’s momentum is in favor of bears today.

The MACD graph is a lagging indicator, and thus it is confirming the general uptrend of the price over the last week. This can be seen as both the MACD line and the Signal line are positive and are above the equilibrium level.

Yesterday, UMA announced on their official Twitter handle that, “UMA is a proud “2-yr Event Sponsor” of Dystopia Labs' new event series. Dystopia Labs has a history of creating high-quality events.”

UMA supports its mission to help its attendees make connections that count so that they can do many new things together.

Day-Ahead and Tomorrow

UMA being one asset managed by Grayscale – the world’s largest asset manager for digital currency – its increasing ecosystem suggests its long-term future looks optimistic as it has risen to become the 94th biggest cryptocurrency in the world.

The Fib numbers are showing that the UMA price is currently being tested at the pivot point at $19.24. If it crosses this level, then it is expected to rise at least till the next Fib level at $21.9.

Looking at the indicators, it may be said that the traders can take a short position if they do not want to hold for a while. However, looking at the weekly trend, traders may benefit from the uptrend if they hold their positions for the next week. For a shorter duration, they can keep their target at $21, while keeping a stop-loss at $16.

cryptoknowmics.com