• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

No Respite for UMA as DeFi Token Plunges Another 8%; What to Watch?

Yashu Gola by Yashu Gola
4 months ago
in Cryptocurrency news, Technical analysis
Reading Time: 2min read
UMA, UMAUSD, DeFi, cryptocurrency

Fitness woman tired resting on the grass with the sky in the background

Advertisement
Nexo Logo
Listen to Article

The UMA Protocol continued to lose portions of its market capitalization on Friday as its native token of the same name plunged further.

THE UMA/USDT exchange rate was trading at $12.81 as of 12:14 UTC, down about 8.5 percent into the European session. Lackluster volumes and low volatility appeared as the primary catalyst for the pair’s dismissive intraday performance.

The latest sell-off in the UMA market followed its attempts to rebound higher in the last two daily sessions. UMA/USDT jumped by around 6.5 percent after locating interim support at $12.39. But bulls showed no interest in staying beyond the $13-resistance target.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

That is partially due to the double-dose brought by two Fibonacci Retracement graphs complementing each other near the $13-level. The 61.8% level of the Fib Graph–drawn by $10.09-low to $19.22-high-coincided with the 23.6% level of another Fib Graph, from the swings high sitting at $37.41 to the low near $10.09.

UMA, UMAUSD, DeFi, cryptocurrency
UMA price targets for the coming session. Source: TradingView.com
UMAUSDT price targets for the coming session. Source: TradingView.com

Tha left UMA bulls in battle with a tight resistance range of $13.58-$14.04. They gave up to pullback pressure as the token attempted a close above $13.21. Atop that, the origin of correction coincided with the upper trendline of a Descending Channel pattern (in green), making it a triple-dose of extreme bearish sentiment.

Technical Outlook Ahead

If bears remain persistent, then UMA/USDT may likely continue their downtrend inside the Descending Channel while targeting certain levels on its way south.

That brings $12.04 as the next potential downside target, also because of its brief history of guarding one bias against the other. If the price moves below it, then traders could extend their bearish target towards $10.04.

In the meantime, UMA/USDT would keep testing the lower trendline of the Descending Channel as its support. If the pair bounces back, it would do so towards the upper trendline of the Channel, followed by a repeated breakout attempt above the $13.58-$14.04 range.

As it happens, the market would need to claim the 61.8% level of its bigger Fibonacci Graph to establish a bullish reversal. That price ceiling sits near $20.

UMA Fundamentals

The latest losses in the UMA market has also followed its association with SushiSwap, a fork of Ethereum-based decentralized exchange (DEX) Uniswap. Ahead of its rally, the founder of SushiSwap had asked users to swap Ethereum for UMA at UniSwap. He further asked the so-called yield hunters to earn SUSHI tokens by transferring UMA from UniSwap’s liquidity pool to its own.

Nevertheless, after the founder exited the SUSHI market following a strong price rally, traders started assuming SushSwap as an exit-scam. The anonymous creator returned later with a name and refuted the allegations. He returned the $14 million worth of ETH that he had secured from the Sushiswap reserves.

I have returned all the $14M worth of ETH back to the treasury. And I will let the community decide how much I deserve as the original creator of SushiSwap. In any currency (ETH/SUSHI/etc). With any lockup schedule you wish.https://t.co/QwFj5SeeuQ

— Chef Nomi #SushiSwap (@NomiChef) September 11, 2020

The price of SUSHI soared by more than 25 percent after that.

But UMA had suffered damage until then. It is now likely for the token to recover its recent losses now that the dust of Sushiswap is behind. And if it doesn’t recover, then $10 appears like a target that may excite bulls into purchasing UMA.

Tags: cryptocurrencyDeFiumaUMAUSD
TweetShare
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

RAMP DeFi Leads The Liquid Staking Race, Opening Ethereum-Based DeFi to Staked Liquidity From Other Blockchains

RAMP DeFi Leads The Liquid Staking Race, Opening Ethereum-Based DeFi to Staked Liquidity From Other Blockchains

5 mins ago
Bitcoin

Bitcoin Struggles Below $38K, Why BTC Could Dive To $32K

2 hours ago
Ethereum

Ethereum is On the Brink of Setting Fresh All-Time Highs as Bulls Take Control

9 hours ago
router

Emerging DeFi Project Router Protocol Raises Seed Funding, To Launch Cross-Chain Farming Soon

17 hours ago

Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop

1 day ago
bitcoin altcoins caution

Proper Altcoin Season While Bitcoin Drops Has Traders “Cautious”

1 day ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Introducing ethrift.io Non-Custodial FIAT Ethereum Gateway

January 16, 2021

SV-based Taraxa Revolutionizes Legacy Data Auditing With Mathematically Provable Audit Trails

January 15, 2021

Kickoff Your DeFi Journey With YOYO FINANCE – Their Token Sale Is Live

January 14, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.