UMA (UMAUSD) fails to capitalize on bullish setup
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UMA Analysis – The market fails to capitalize on its bullish setup
UMA fails to capitalize on its bullish setup and instead of an increase in the price, the market falls back to the same spot. The bullish setup which was engineered to facilitate the increase in price is the ascending triangle. As a result, the coin has been tapering through this design since around mid-June. The coin actually broke the $4.000 resistance but it was extremely incapable of holding above it and has therefore dropped back below $3.300.
UMA Significant Levels
Resistance Levels: $4.000, $3.300
Support Levels: $1.500, $1.200
The sellers had seriously plummeted the market when they pushed the price down from $8.200 down below $4.000. This spanned the space of a month. Since then, the $4.000 significant level has posed itself as a barrier to the upward mobility of the price, resisting the market in May. A weak buying base decided to consolidate into a triangle pattern to boost their chances of reclaiming lost price levels
This they did, tapering the price from June through to mid-August. By late August, the market was mature and ready to break out. The breakout came in an upward direction, breaking the triangle, and piercing through the $4.000 key level. The price quickly dropped after not being able to hold on. The Stochastic Oscillator lines have plunged into an oversold region as a result.
Market Expectation
On the 4-hour chart, the MA period 40 remains above the candlesticks. The trend of the Stochastic Oscillator shows an initial sharp, then gradual decline of the price into an oversold zone. The price action of the market is not giving any indication that the buyers are dominating. Rather, the bearish strain seems to be getting stronger. Therefore, the price is expected to drop to $1.500.
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