UMA Price Has Surged by 60% in the Past 2 Days: What’s Next?

• UMA Price Has Extended to the Resistance Level and formed a reversal candlestick.
• The trading volume has surged by around 3000% in the last few days.
• The RSI has jumped from 39 to 63 in the past 2 days, indicating the buyers’ strength.

The UMA price has been in a strong bearish trend over a wider time frame, but buyers are showing interest in the short term. Since October 2023, it has gained approximately 200%, and bulls have dominated.

In the last week of January, the crypto asset price recorded a 52-week high but failed to sustain. The price has displayed a slow and steady fall since the beginning of this year. For the last few weeks, the price has struggled between the $2.5 and $3 hurdles, triggering a solid breakout.

Volume Has Pumped by 3000%: Let’s See 

In the last 3 days, the trading volume has jumped by more than 3000%, and the price is up by 60%. In the past few hours, the trading volume has decreased from $470 Million to $295 Million, which may lead to a short-term bearish momentum. The negative change in trading volume can affect the price negatively and lead to a correction phase.

Price vs Active Social Users (Twitter) Analysis

As per the given data, engagement on social media like X (formerly Twitter), Telegram, and Instagram increased slowly and consistently. If the number of social media followers keeps growing, it may positively affect the price.

UMA Crypto Has Seen a Big Jump in Interest

️ $VELO has been gaining a great deal of traction amongst #crypto traders lately, being referred to as the "XRP of South East Asia". In 6 weeks, its price is +358%. Meanwhile, $UMA has seen a big jump in interest following its +50% gain over the past 36 hours.

See the… pic.twitter.com/RXqzLd4J0m

— Santiment (@santimentfeed) May 10, 2024

After a major pump in the cryptocurrency, UMA is one of the top trending tokens nowadays. UMA cryptocurrency has seen a big pump in interest following its 50% gains in the past few days.

UMA Price Prediction Over Daily Timeframe

At press time, the UMA Protocol traded at $3.69 with an intraday loss of 5.51%, and the market capitalization was $297.36 Million. The trading volume was $286.52 Million. It ranked 25th in the cryptocurrency market according to its trading volume.

Track all markets on TradingView

As per the chart structure, the price has been declining by facing resistance from the trendline. The price has extended to the trendline and formed a bearish candlestick. The trading volume has increased a lot; if it remains stable, then buyers may look for a breakout.

If the UMA price triggers a breakout from the trendline and sustains, buyers may eye for the last swing high. On the other hand, if the price fails to sustain near the trendline and closes below the previous candlestick, a short-term negative momentum can be expected.

Conclusion

UMA price chart structure displays the buyers’ interest and has gained about 60% in the past 2 days. The trading volume has pumped by 3000% in the last 2 days, positively impacting the price. The price has reached a crucial breakout level and surpassed the key moving average.

Technical Levels

As of the chart, the price may face resistance near the $4 mark, and if it advances this hurdle, the momentum can be interrupted near the $6. Alternatively, if the price drops, it may take support on the $2.50, and another support level can be $1.85.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.