UMAUSD Continues Its Correction Phase
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UMAUSD Analysis- Market Continues Its Correction Phase on UMAUSD
UMAUSD continues its correction phase after a long period of a massive market crash last year. Until mid-June, the market was in a downtrend, owing to a large sell order placed by market makers in April 2021. On November 15, 2021, the market reached its current local high and sank to the 8.8400 zone before rallying twice in a few days to a major resistance level of 12.7600. Since the market reached this level, 12.7600 has become an unattainable zone for UMAUSD as the price continues to sink into its major support zone.
Market Major Levels
Resistance Levels: $8.8400, $12.7600
Support Levels: $2.4000, $1.6000
Due to the last rally towards the major resistance 12.7600, an order block and imbalance (OBIM) was formed, leading to a wide fair value gap (FVG) that later filled as conventionally required. This OBIM later resulted to a breaker which is expected to be a supply zone after the correction phase ends and further crash the market downward later in the future.
As the market keeps sinking downward and forming lower highs and lower lows, a bullish divergence was formed in correspondence with the Relative Strength Index (RSI), this indicates that UMAUSD is about to change its course and start soaring upward; another confirmation for this analysis is the reaction of the price around the major support levels 2.4000 and 1.6000 as it appears that the market keeps struggling to break through the support zone thereby resulting to the reason why the market continues in its correction phase.
UMAUSD Market Expectation
Apparently, the bears succeeded in crashing the market to the support zones, so there seems to be a battle between the bulls and the bears now as the price finds it difficult to break beyond the formed triangular pattern and continues its correction phase. Should the bears keep closing their positions for the bulls, the market is expected to break through the triangular pattern upward into the supply zone before continuing its downward trend.
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