UMA Technical Analysis: Price Likely to Fall Below the Third Support Level of $26.30

Uma is a blockchain network that provides a robust infrastructure for the development of synthetic assets. It is a high-speed, scalable, and hack-free network for building synthetic assets on the Ethereum blockchain. It is cost-effective as it reduces costs by minimizing on-chain transactions. UMA is the native token of this ecosystem. The following UMA technical analysis predicts the price movements for the next few days:

Past Performance

On May 8, 2021, UMA opened at $25.29. On May 14, 2021, UMA closed at $27.71. Thus, in the past week, the UMA price has surged by roughly 10%. In the last 24 hours, UMA is trading between $26.30-$27.69.

Day-Ahead and Tomorrow

Currently, UMA started trading at $26.68. The price has decreased from the day’s opening price of $27.71. Thus, the market seems to be bearish.

The MACD and signal lines are negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, the price is poised to fall further.

Currently, the RSI indicator is at 45%. It faced rejection at 55% and fell to this level. Thus, selling pressures are high. Hence, like the MACD indicator, the RSI oscillator is also pointing towards a further price decline.

The OBV indicator is also falling steadily. Thus, selling volumes are higher than buying volumes. High selling activity will push the price further down. Thus, all the oscillators have given bearish signals.

UMA Technical Analysis

The price has fallen below the second Fibonacci pivot support level of $26.70. It is soon likely to fall below the third support level of $26.30 as well.

The price has tested and fallen below the 23.6% FIB retracement level of $26.81. The price is soon likely to fall below the 23.6% FIB extension level of $26.27. Thus, the price downtrend is strong and is likely to continue tomorrow as well.



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