UMA surged 26.54% from a high-confluence support area, catching traders’ attention with a sharp bullish move. However, after rejecting from local resistance at $1.80, the focus now shifts to whether bulls can defend support for continuation—or risk a full retrace within a broader range.
After a strong and impulsive rally, UMA (UMA) has caught the attention of traders with a 26.54% move from support. This rally originated from a technically significant zone and marked a bullish shift in short-term momentum.
However, price has now encountered resistance at $1.80, and a rejection has already formed, leaving a wick that may signal early exhaustion. The question now becomes: can UMA sustain this bullish structure—or is this just a temporary bounce in a broader range-bound market?
Key technical points
- Rejection at $1.80: Price met resistance and sold off, forming a rejection wick.
- Key Support Zone at $1.60–$1.40: This zone includes a flipped order block and the local value area high.
- Bullish Continuation Depends on Holding Support: If the zone holds, a move toward $2.55 becomes more probable.
UMAUSDT (1D) Chart, Source: TradingView
The recent rally originated from a well-defined demand zone, supported by strong confluence—previous structure support, high-volume interest, and a flipped order block. This move marked a short-term bullish shift, but the price stalled at $1.80, a historically significant resistance level.
A rejection wick formed at this level, suggesting profit-taking and early signs of bearish absorption. Since then, UMA has pulled back into the $1.60–$1.40 region, which now becomes a critical zone for the next directional move.
This region is not just a psychological support but also houses an order block that has flipped from supply to demand. In addition, the value area high is also situated here, giving extra weight to this zone. If price remains above this area and begins forming higher lows, bulls could look to target $2.55 as the next significant resistance.
However, failure to hold this support would invalidate the bullish thesis. A breakdown below $1.40 would likely lead to a full rotation back to the origin of the pump, indicating that UMA is still trading within a broader range defined by daily and monthly levels. In this case, the recent rally would be classified more as a deviation within a sideways structure rather than a breakout.
What to expect in the coming price action
All eyes are now on the $1.60–$1.40 support. If UMA can hold this zone, we could see continuation toward $2.55. If it breaks, expect a pullback to retest the lows of the range and re-enter accumulation.
