UMA (UMAUSD) Drops as Bullish Momentum Dwindles
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UMA Analysis – Price Drops as Upward Momentum Weakens
UMA drops as bullish momentum keeps weakening. The coin began being bullish at around the $10.500 key level. Price pumped upwards on the 19th of October, rising by 34.80%. However, immediately after price rose past the $13.500 supply level, a reversal candlestick pattern, a tweezers top, was displayed, after which price drops. The market first drops to $12.000 and thereafter it falls below it.
UMA Key Zones
Supply Zones: $12.000, $13.500, $15.000
Resistance Zones: $10.500, $9.500, $8.500
Sellers have been very dominant in the market since the 6th of September. The descending triangle pattern is a testament to the domineering nature of sellers and the insufficient effort of buyers to overturn the market. However, buyers had an upper hand when the coin finally broke out of the pattern. They wrestled the market from the sellers to drive it beyond $13.500. But that victory would only be temporary as the market comes crashing down immediately.
UMA drops to $12.000 and is vigorously reacting at this level as sellers try to restamp their authority on the market. The coin has been dragged down back below the upper border of the envelope indicator. However, price is trading off the midline of the envelope and buyers can recover at this point to reclaim $12.000. The Stochastic Oscillator has its lines at mid-level to put the market in equilibrium, but a cross upward could signal a shift in the buyers’ favor.
Market Predictions
The 4-hours chart shows price reacting around the $12.000 key level. For the past two days, buyers have been gaining momentum. The Stochastic Oscillator has climbed above the mid-level and is approaching being overbought. The price is currently trading to the upside of the Envelope’s EMA. Buyers need to hold above the EMA and break through $12.000 upward if they are to have a chance of having greater influence in the market. When this is done, buyers can look forward to reclaiming $13.500.
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