UMA’s Bullish Rally Faces Critical Support Test
UMA has seen a notable 26.54% surge from a key support area, drawing traders’ attention. This bullish move originated from a technically critically importent zone,signaling a shift in short-term momentum. However, the price hit resistance at $1.80 and has since pulled back.
The rejection at $1.80 formed a wick, hinting at early exhaustion. Now, the focus is on whether UMA can hold the $1.60–$1.40 support zone. This area is crucial as it includes a flipped order block and the local value area high.
- Rejection at $1.80: Price met resistance and sold off.
- Key support Zone at $1.60–$1.40: Includes a flipped order block and local value area high.
- Bullish Continuation Depends on Holding Support: If the zone holds, a move toward $2.55 becomes more probable.
The recent rally came from a well-defined demand zone with strong confluence. The price stalled at the historically significant $1.80 level, suggesting profit-taking.
UMA has pulled back into the $1.60–$1.40 region, a critical zone for the next move. If price remains above this area and forms higher lows, bulls could target $2.55. However, a breakdown below $1.40 would invalidate the bullish thesis, leading to a retest of the range’s lows.
Traders should watch the $1.60–$1.40 support. If UMA holds, it could continue toward $2.55. If it breaks, expect a pullback to retest the lows and re-enter accumulation.
