UMA Technical Analysis: Flat to Bullish Trend in the Days to Come

Ankita  |  Aug 18, 2021

The concept of UMA is developing a protocol for the creation of synthetic assets and financial contracts on the blockchain. It seeks to democratize and decentralize the financial derivatives market. UMA contracts based on Ethereum’s blockchain are permissionless in nature and allow any user to create, run, and trade digitized derivatives from anywhere. This accessibility is especially important for the developing economies around the globe, where financial institutions are frequently far from maturity, forcing local market participants into relative isolation.

Let us look at the technical analysis of UMA.

Past Performance

While most altcoins had tanked around July 20, 2021, UMA had seen its dip within the last two months in June itself when it came down to $10.487 from $17.917. Since June, it has been trading range-bound between $12.234 and today’s price of $11.328. It dipped to $8.465 on August 3, 2021, but has recovered today.

It has shown a trading volume of 94% increase within the last 24-hours. During the last 24-hours, UMA has traded between $10.93 and $13.86. The price change has been below 1%. It has a market cap of $735,296,848.65 and a 24-hours trading volume of $108,038,381.51, with a circulating supply of 62,462,181 UMA. This high turnover shows a very positive sentiment for HODLers.

TradingView Chart

UMA Technical Analysis

Currently, UMA is trading at $11.776. The price has increased from the day’s opening price of $11.349. The market has been bullish since the last month.

Currently, the RSI indicator is at 61% and above. It shows the overbought sentiment. The last drop it had seen was in early Aug at 44%, and since then it has been moving upwards only.

The MACD and EMA signal lines are easily in the positive zone. Moreover, a bullish crossover by the signal line over the MACD line has occurred. Thus, the overall market momentum is turning bullish. Hence, UMA remains favorable for HODLing.

In short, when we look at both the oscillators, we can say that the price may continue to increase. Price reversal might not be a concern for today and tomorrow.

Day-Ahead and Tomorrow 

The price is already near the Resistance level 1 of $11.147 and once it crosses Fibonacci Resistance at $13.378, we can start to be a little careful about the price movement thereon.

If the bulls remain strong till day end, then the price is likely to go beyond the level of $14.912 and $16.966 for the next resistance levels.

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