UMA price on the brink of a significant correction down to $25 if this level cracks

  • UMA price had a massive 300% breakout in the past week hitting $43.99.
  • The digital asset has been under consolidation since then but could see a stronger pullback.
  • Many on-chain metrics remain in favor of UMA over the long-term.

UMA had an explosive breakout on February 2 jumping from a low of $11.23 to a high of $18.74 within 24 hours. Three days later, the digital asset hit an all-time high price of $43.99 and it’s currently trading at $29.74 after a brief pullback.

UMA price could see a stronger correction according to several indicators

Although UMA price has already experienced a notable correction, the digital asset might be poised for more. On the daily chart, the TD Sequential indicator presented a sell signal on February 7. 

uma price

UMA Sell Signals

Additionally, on the 1-hour chart, the indicator presented another sell signal and it’s on the verge of doing the same on the 2-hour chart which means that UMA’s short-term outlook is also bearish.

uma price


The In/Out of the Money Around Price (IOMAP) chart shows that UMA has only one robust support area between $28.86 and $29.75 with 2.63 million UMA in volume. Losing this level can quickly push UMA price down to $25 as there are no other significant support levels below. 

uma price

UMA Holders Distribution chart

However, since December 20, 2020, the number of whales joining the UMA network has exploded from a low of 39 to a current all-time high of 53. Each whale is holding between 100,000 and 1,000,000 coins ($3,000,000 and $30,000,000).

The IOMAP model indicates that the range between $30.5 and $31.3 is the strongest barrier for the bulls. Cracking this resistance area will drive UMA price towards $44 again.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu investors pressure Robinhood to list SHIB despite recent price slump

Coinbase Custody announced support for the Shiba Inu but has not listed it on its professional trading platform. A petition requesting Robinhood to list SHIB has garnered the attention of the community with over 174,000 signatures. Over the past month, Shiba Inu price dropped over 30%; a further drop is expected. 

More Shiba Inu News

XRP price likely to reverse as 250 million tokens hit exchange wallets

XRP price chart is uneventful, mainly due to the indecisiveness in the SEC v. Ripple case. The overall altcoin market saw an extended rally, but traders have a bearish outlook on the sixth-largest cryptocurrency by market capitalization due to the stalled uptrend.

More Ripple News

Axie Infinity could be staring at 38% correction

Axie Infinity price might be preparing for a minor upswing that will evolve into a downswing. A failure to slice through $46.02 could trigger the 38% correction to $28.15. A decisive 6-hour candlestick close above $49.80 will invalidate the bearish thesis.

More Cryptocurrencies News

Bitcoin SV suffers 51% attack, BSV price loses critical support level

Bitcoin SV, a fork of Bitcoin Cash, has suffered a 51% attack following a series of attacks last month. Over 12 blocks have been reorganized and three versions of the blockchain have been mined simultaneously. Crypto exchanges could continue to delist the token given the security issues associated with BSV. 

More Bitcoin SV News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast