The cryptocurrency market remains under pressure, the price of Bitcoin still cannot stabilize above the $ 40,000 resistance, and the risk of further declines is not over yet. UMA has weakened from $ 32.25 below $ 10 since May 10, with the current price hovering around $ 14.6.
Fundamental analysis: This is not the best time to invest in UMA
UMA is an open source infrastructure that enables the creation of fast, efficient and secure synthetic assets on the Ethereum blockchain. Developers can easily develop a new synthetic asset using an invaluable synthetic token contract template, while it is important to mention that tokens that are built on this infrastructure can track the price of anything.
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The native token of this open source infrastructure is the UMA token, which is used as a government token for the UMA system. Stocks, futures, cryptocurrencies, insurance products, among others, can be traded on UMA, and the goal of this project is to open trade to anyone without paying a high fee.
UMA is a truly unique DeFi project with unimaginable potential; The popularity of this project is increasing around the world, while more and more exchanges offer this cryptocurrency. Despite this, the UMA has tumbled from the recent highs recorded in the second week of May, and the risk of further declines is probably not over.
The Bank of China announced that digital tokens could not be used as a form of payment, and this announcement led to a massive sale. The cryptocurrency market has lost billions, and it is important to mention that cryptocurrency analysts Carter Worth said on CNBC that Bitcoin could fall below $ 30,000 in the near future.
Another negative news is that the Chinese government issued a statement committing to introduce stricter crypto regulations and warning investors against speculative crypto trading.
“Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative cryptocurrency trading has rebounded, seriously infringing on the security of people’s property and disrupting the normal economic and financial order,” the Chinese government said. in the statement.
Technical analysis: The risk of further falls is probably not over
The cryptocurrency market remains under pressure, the UMA price can easily pull back below the $ 10 support and it is probably not the best time to invest in this cryptocurrency.
Data source: tradingview.com
UMA is currently trading around the $ 14 level, but it would be a strong sell signal if the price falls below the $ 10 support. The next price target could be around $ 8 or even $ 5; even so, if the price falls and jumps above $ 20, we have the open road to $ 25.
UMA has tumbled from recent highs recorded in the second trading week of May, and this is probably not the best time to invest in this cryptocurrency. If the price of Bitcoin falls below the $ 35,000 support level, it would be a firm ‘sell’ signal, and this would add further pressure to the entire cryptocurrency market.