- UMA crypto price has followed a strong bearish structure over the last three months.
- The UMA has increased by just 19% in the last year.
UMA is an open-source blockchain protocol enabling the creation, management, and settlement of decentralized financial contracts. It also includes synthetic assets or derivatives.
The derivatives trading volume for the UMA crypto has advanced by 71% in the last 24 hours, further showing traders’ engagement in the crypto. Following this, the spot volume has also advanced by 20%.
Based upon the press time, the Coinglass data of the UMA crypto further shows a higher long liquidation of $147.04K recorded in the last 24 hours. It further indicates the dominance of sellers in crypto.
Despite the advance in the trading volume of the crypto, the market cap is declining. This further shows the strength of the declining momentum of crypto.
The crypto price volatility is high, as per CoinCodex, resulting in 17.0%, and the fear and greed index is further neutral.
The crypto was launched in May 2020 and was worth $1.16. Since then, the price has doubled, trading at $2.44 in press time.
What Does Derivatives Volume Indicate In UMA Crypto?
The volume of derivatives within the cryptocurrency market is a key indicator of traders’ activity levels. At the same time, it indicates the intensity of engagement within the crypto space.
The Coinglass chart further shows a declining trend in the derivatives trading volume. The trading volume for the crypto was at its peak in January 2024.
Following the price, the derivatives volume of the crypto also started to decline from its peak and is still at significant lows, followed by the press time.
The observed trend in derivatives volume suggests a decrease in traders’ interest and participation within the cryptocurrency market, indicating a decline in trading activity and the number of active traders.
Strong Bearish Candles On UMA Crypto Chart!
The daily chart of the UMA crypto shows multiple lower-high swings, which show how deliberately the profit booking takes place in the crypto.
The UMA crypto trading price has broken below one of the most reliable supports, $3.00, which shows a strong bearish sentiment in the crypto price.
Furthermore, after breaking the support, the following support level has flipped into resistance, and the price continues to decline to lower levels after being rejected at the same level.
The technical indicators further suggest a downtrend in the trading price of the crypto.
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UMA/USD Chart by TradingView
The 20-day and the 200-day EMAs have formed a bearish cross on the daily chart. The price of the UMA crypto is also trading below the following EMAs.
The 50-day EMA is also declining towards the lower level, and if the price continues to decline, we might witness a death cross of 50 and a 200-day EMA in the future.
The MACD line has crossed the signal line, but both metrics trade below the median. The overall scenario indicates the major trend of the UMA crypto as bearish.
The RSI has declined below the 14-day SMA and has been slipping to lower levels from the overbought zone since January 2024.
RSI is trading at 33.26 on press time, which shows that the RSI is following a bearish cycle in the daily timeframe.
Summary
UMA crypto exhibits a strong bearish trend, which is evident in its declining price structure and limited growth over the past year.
The market cap continues to decline despite increased trading activity, reflected in rising derivatives volume. Technical analysis indicates a sustained bearish sentiment, with price struggling below key support levels.
Technical Levels:
- Support levels: $1.20 and $2.10
- Resistance levels: $3.20 and $4.20
Disclaimer
This article is for informational purposes only and does not provide any 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.
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