Hey, friends hope you are well and welcome to the new update on the UMA token.
A down trend, sideways and an expected uptrend move:
According to the Binance exchange in Sep 2020, the price of the UMA token was above $20. Then there was a drastic drop and on 9th Oct a powerful bullish candlestick with powerful volume signaled that the down-trend is over. Then the price action moved sideways and now again we have another powerful bullish candle with powerful volume has appeared, that is signaling that now from here the up-trend can be started.
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Formation of wedge pattern:
On the daily chart, the price action has formed a wedge pattern but again rejected by the resistance. Now the price action may re-test the support of this pattern before the next rally.
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Fractals and simple moving averages:
On the daily chart, we have so many bearish reversal fractals and after combining all fractals we can find resistance at $9.1, which is almost at the same level where we have the resistance of the wedge pattern. This time after this powerful spike the price action has broken out the 25 and 50 simple moving averages, therefore now the chance of breakout soon is increased.
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Conclusion: The powerful buying volume and the breakout of 25 and 50 simple moving averages are giving an indication that soon after correction we may see a breakout from the resistance of the wedge. After the breakout a new uptrend can be started that can lead the price action back to $20 or more.
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