UMA (UMA) Price Prediction 2023-2030: Will UMA Price Reach $4 Soon?

• Bullish UMA (UMA) price prediction ranges from $1.429 to $3.800
• Analysis suggests that the UMA price might reach above $3.720
• The UMA bearish market price prediction for 2023 is $1.888

What is UMA (UMA)?

UMA is an optimistic oracle (OO) that has the ability to record any verifiable truth onto a blockchain. UMA’s Optimistic Oracle allows contracts to quickly request and receive any kind of data. Additionally, UMA’s Oracle system comprises two core components which are Optimistic Oracle and Data Verification Mechanism (DVM). 

The OO has been called “a human-powered truth machine” because it is flexible enough to handle ambiguity and expands the design space possible in web3. UMA’s OO secures a diverse ecosystem of web3 applications, including cross-chain bridges, insurance protocols, prediction markets, and customizable DAO tooling products.

UMA (UMA) Market Overview

UMA (UMA) Current Market Status

UMA has a circulating supply of 71,227,885 UMA coins, while its maximum supply is 101,172,570 UMA coins, according to CoinMarketCap. At the time of writing, UMA is trading at $2.40 representing 24 hours decrease of  2.15%. The trading volume of UMA in the past 24 hours is $57,786,812 which represents a 13.82% decrease.

Some top cryptocurrency exchanges for trading UMA are  Binance, OKX, Deepcoin, Bitrue, and Bybit. 

Now that you know UMA and its current market status, we shall discuss the price analysis of  UMA for 2023.

UMA Price Analysis 2023

Will the UMA blockchain’s most recent improvements, additions, and modifications help its price rise? Moreover, will the changes in the payment and crypto industry affect UMA sentiment over time? Read more to find out about UMA’s 2023 price analysis.

UMA Price Analysis – Bollinger Bands

The Bollinger bands are a type of price envelope developed by John Bollinger. It gives a range with an upper and lower limit for the price to fluctuate. The Bollinger bands work on the principle of standard deviation and period (time). 

The upper band as shown in the chart is calculated by adding two times the standard deviation to the Simple Moving Average while the lower band is calculated by subtracting two times the standard deviation from the Simple Moving Average.

When Bollinger bands are used in a cryptocurrency chart, we could expect the price of the cryptocurrency to reside within the upper and lower bounds of the Bollinger bands 95% of the time. The above thesis is derived from an Empirical law. 

The sections highlighted by red rectangles in the chart above show how the bands expand and contract. When the bands widen, we could expect more volatility, and when the bands contract, it denotes less volatility. 

Currently, the Bollinger bands are expanding and UMA has retraced after touching the upper Bollinger band. We could expect UMA to land on the Simple Moving Average (SMA). Although it might be tempting to enter the market when the price reaches the SMA, hoping UMA to surge, however, it is not the case. 

This is because UMA has not surged after landing on the SMA on its way down after touching the upper band. It has rather sunk below the SMA and touched the lower band before surging.  Hence, long position holders may want to wait for the market to move and sell out excess UMA,  in order to create demand. 

However, since UMA has only retraced after touching the lower Bollinger bands, the whales may see this as an opportunity to dismantle the buying position. As such they could buy a whole load of UMA and make the decreased price rise. This could bring about loss to those buyers who are already placed an order to enter the market at the lower Bollinger band. 

UMA Price Analysis – Relative Strength Index

The Relative Strength Index is an indicator that is used to find out whether the price of a security is overvalued or undervalued. As per its name, RSI indicators help determine how the security is doing at present, relative to its previous price. 

Moreover, it has a signal line which is a Simple Moving Average (SMA) that acts as a yardstick or reference to the RSI line. Hence, whenever the RSI line is above the SMA it is considered bullish and if it’s below the SMA then it is bearish. 

When considering the first green rectangle from the left of the chart below we can see that the  RSI is above the signal. Hence, UMA is bullish and as a result, it is making higher highs. 

The second green rectangle shows that the RSI line (purple) is below the Signal line (yellow). As such, UMA is bearish or losing value. Therefore it is reaching lower lows as shown in the chart. 

Currently, the RSI of UMA is at 52.72 and is below the signal line. As such, the trend seems to be bearish, hence, we could expect UMA to reach a lower price level. However, once the RSI reaches below the 50 mark we could expect UMA to reverse at any given instance, hence, buyers should be vigilant about this and enter the market when the trend is about to turn around. 

To properly adjudicate this scenario, it is better for the investors to wait for the market to make a move, before making any vital moves. In particular, they may want to wait for the RSI which is below the Signal to cross. 

However, in the event that they wait for the RSI to cross the signal line, there is also a chance of losing some percentage of profit that could be gained. As such, those looking to cash in on the lock, stock, and barrel should consider using another indicator or a combination of indicators for ensuring the probability of the occurrence of a trend reversal. 

UMA Price Analysis – Moving Average

The Exponential Moving averages are quite similar to the simple moving averages (SMA). However, the SMA equally distributes down all values whereas the Exponential Moving Average gives more weightage to the current prices. Since SMA undermines the weightage of the present price, the EMA is used in price movements. 

The 200-day MA is considered to be the long-term moving average while the 50-day MA is considered the short-term moving average in trading. Based on how these two lines behave, the strength of the cryptocurrency or the trend can be determined on average. 

In particular, when the short-term moving average (50-day MA) approaches the long-term moving average (200-day MA) from below and crosses it, we call it a Golden Cross.

Contrastingly, when the short-term moving average crosses the long-term moving average from above then, a death cross occurs. 

Usually, when a Golden Cross occurs, the prices of the cryptocurrency will shoot up drastically, but when there’s a Death Cross, the prices will crash.

Whenever the price of cryptocurrency is above the 50-day or 200-day MA, or above both we may say that the token is bullish (Green rectangle). Contrastingly, if the token is below the 50-day or 200-day, or below both, then we could call it bearish (blue triangle section).  

Unlike a conventional Golden Cross that produces a surge in price, UMA lost value lost. But, however, shortly after losing value, UMA was able to recover. It started rebounding on the 50-Day MA. 

After a brief period of rebounding on the 50-day MA, UMA sought support from the 200-Day MA which gave it the boost to rise above both the moving averages. Nonetheless, the bull’s power seems to be fading away as UMA is falling in value searching for Support on the 50-Day MA. If the 50-Day MA would come to UMA’s rescue, then it would qualify as a haven for traders to enter the market. 

In contrast, if the 50-day MA fails to hold UMA from falling further, then the 200-day MA may need to come to UMA’s rescue. If it does then the 200-day MA would also qualify as an excellent entry point for UMA. However, traders should wait for the formation of some bullish candle sticks once UMA reaches either of the Moving Averages before entering the market. 

UMA Price Analysis – Rate of Change

The Rate of Change Indicator is a momentum oscillator, that measures the change of the current price against the past price a few (n) periods ago, in percentage. As long as the price is rising ROC will be positive. But, the ROC indicator will reach the negative zone when the prices reduce. Increasing values in either direction, positive or negative, indicate increasing momentum and moving back toward zero indicates diminishing momentum.

Unlike the RSI, ROC has no set overbought or oversold regions, it rather depends on a trader’s discretion. Traders often tend to find the areas in the positive and negative zones where the trend changes have happened in regularity. Based on this they could mark their bounds for overbought and oversold regions.

ROC could also be used as a divergence indicator that signals a possible upcoming trend change. Divergence occurs when the price of a stock or asset moves in one direction while its ROC moves in the opposite direction.

For example, if a stock’s price is rising over a period of time and registering higher highs while the ROC is progressively moving lower, or making lower highs, then the ROC is indicating bearish divergence from price, which signals a possible trend change to the downside. The chart shows an example of the above scenario. The same concept applies if the price is moving down and ROC is moving higher.

Additionally, the zero line crossover could be used to signal trend changes. However, depending on the number used for n (periods) in the indicator the signals may come in early or late.  

UMA’s extremely overbought regions are marked as Overbought Region 1 at 14.60, Overbought Region 2 at 34.02, and Overbought Region 3 at 53.09. UMA’s trend reversed many times after it reached the Overbought Region 1. Meanwhile, UMA’s Oversold Regions are marked as Oversold Region 1 at -20.18, Oversold Region 2 at -42.69, and Oversold Region 3 at -52.41.

Currently, the ROC indicates a value of 12.45 just under the Overbought Region 1. Moreover, the ROC is parallel to the horizontal axis. As such, UMA could move in either direction. As such traders should do their due diligence. 

UMA Price Prediction 2023

When looking at the chart above we could see that UMA is searching for support on its way down after touching the upper Bollinger band. We could expect UMA to land on the Simple Moving Average (SMA), however, if it does not find support at the SMA, it could land on Support 1 at $1.888. Furthermore, if UMA does not find support at Support 1, it may tank to Support 2 at $1.498. 

On the contrary, if the bulls come to UMA’s rescue we could expect UMA to reach Resistance 1 at $3.142. Moreover, if the bulls keep pushing further, we could expect UMA to reach Resistance 2 at $3.720. Nonetheless, it would be better if buyers let the market settle. 

This is because UMA did not show any rise from where it is during its abode on previous occasions. Hence, expecting a rise from UMA from where it is as of now would be quite unlikely. As such buyers may want to let UMA fall to either Support 1 or Support 2 to enter the market. 

On the flip side, sellers may need to liquidate their UMA holding before its price further tanks. 

UMA Price Prediction – Resistance and Support Levels

When looking at the above chart we could see that UMA surged from Resistance 2 to Resistance 6 in late January 2021. After that, we could see a period of consolidation between Resistance 4 and Resistance 6. However, following this period of consolidation, UMA had a fall equivalent to its drastic surge. It fell from Resistance 6 to Resistance 2. 

We could see UMA trying to recover by consolidating between Resistance 2 and Resistance 4 forming a double bottom. Although it was able to consolidate for a brief period, the bears were too strong, hence, UMA fell to Support 1 in May 2022. Since then, it’s been a year that UMA has been resting on Support 1. Although Support seems quite solid if the bears are strong enough they may cause UMA to form new support levels. 

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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