Will UMA Bulls Overcome $9 for Trend Resumption?

The UMA price continues to consolidate in the daily chart. While the immediate trend is neutral in a potential accumulation, traders are watching out for a breakout above or below key trend lines.

At the time of writing (Nov 28), the UMA price is stable on the last day but down seven percent week-to-date.

Even so, the average daily range has been minuscule in the last few days.

UMA Price Overview

The UMA price is ranging within a $3 range with caps at $9.2 to the upside and $6.2 to the downside, respectively. 

While bulls may be temporarily in charge considering candlestick arrangement, a break above or below any of the above levels would signal either a reversal from spot levels or further losses mirroring those of September 2020.

Events from the news front will nonetheless influence price action.

Universal Market Access (UMA) Market Movers

Universal Market Access (UMA) is a DeFi protocol allowing users to create custom collateral crypto synthetic tokens that can track prices of the underlying asset. It is a framework on Ethereum for users who want to create synthetic assets.

It, therefore, means virtually any asset, digital or virtual, can be tracked on a transparent blockchain.

As such, ordinary people, not just institutions, can access financial risks, especially in the derivatives market. 

To spark more activity, UMA–early this month, announced a developer mining program. It is a solution and a way through which developers can raise funds. 

The Risk Labs foundation has been issuing out 50K UMA every week –beginning on Nov 10, for developers deploying derivatives through the UMA protocol. Tokens received depends on the value locked in each contract.

The whole idea of the developer mining program is to encourage the building on the platform, technically enabling builders to feel a part of the dApp they helped create.

Atomica is the latest to win a liquidation bounty:

Our pool recently has won a liquidation bounty from @UMAprotocol !

This bonus will be converted into $cDAI and transferred to a pool as an additional profit. pic.twitter.com/G06dXkVgH9

— Atomica (@atomica_org) November 13, 2020

UMA Price Prediction

The UMA price is ranging within a $3 zone.

Notably, bears are in control. The pace was set in early September when the UMA price fell from $20 to $5 in a month. Prices are yet to recover and continue in range mode.

In the medium term, the Oct 9 bull bar plays a significant role for traders. For one, the UMA prices are ranging within its high-low. 

From volume analysis, this is bearish. For over two months, prices have been oscillating within a $7 zone with caps at $13 and lows of $6. Additionally, trading volumes are average.

Losses below the support trend line, ideally with high trading volumes—exceeding Nov 11’s, may force the UMA price below $6 and to new 2020 lows.

Conversely, the current price action may be an accumulation if there is a break above $9.2. The immediate target, in that case, will be $13, or Nov 11 highs.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.