UMA creating a descending triangle UMA is looking very undecided at the moment.
Looking at the chart, we are seeing a clear downtrend. Yet, if we pay attention to the RSI, it signals that UMA is a bit undervalued at the moment, on the hourly chart. On the 4 hour chart, it does signal slight overboughtness, increasing it on the daily chart, which indicates that we are being overtaken by a bearish trend.
Similarly to the RSI, on hourly chart MACD is also undecided and can go either way from here.
Confused as probably you are, I decided to dive and investigate the on-chain data and where does signal a clear bullish trend which may mean that we are now is a perfect buying zone. This also proved with the Fibonacci retracement.
We are also coming to an important breaking point of a descending triangle which started its creation since our huge breakout on 3rd of February and later today we should confirm breakout or breakdown from the triangle.
With this all in mind, we have two scenarios:
1. Jump to 34 EUR and confirm the new all time high
2. Fall to 14 EUR where we have solid support from the early investors
Let me know your opinion on this and let's discuss our best moves here.
Happy trading.
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