Crypto Nugget: Is Ultra (UOS) preparing for another bearish leg?

Like every other Crypto Nugget on Wednesday, let’s take a look at the charts to analyze an asset chosen by you on our social network. Today’s winner is UOS, The most important asset of the ULTRA project. Investors are waiting for access to the general public of the platform and the arrival of new features, UOS seems to be struggling to withstand the downturn. In fact, this reasoning applies to the vast majority of cryptocurrencies on the market. But then, does the asset have enough to recover in the coming weeks? That is what we will see in this new technical analysis.

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The pending UOS asset

UOS exchange rate against dollar weekly

After a long period of accumulation from September 2019 to July 2020, UOS exploded higher by registering several heights, allowing it to record -one all time high to $ 2.49. But like the rest of the market, UOS suffered the bulk of the downturn in the financial markets. Recently, it broke a support zone that was former resistance, which demonstrates the strength of the sellers to buyers.

On this weekly scale, you can see the strength of the downward trend with the calculation of troughs and falling peaks. The recent bearish wickets stopped at the same level as a previous low. There is therefore one EQL (Equally low), below which the price will have to seek liquidity. At the higher levels you can see one supply area and more FVG (Fair Value Gap) formed in previous weeks. The ideal scenario would be to return to supply area before continuing down. However, I do not support this scenario. Why ?

The macroeconomic context does not bode well for a lasting recovery in assets risk on like cryptocurrencies, on the contrary. Therefore, it seems to me far too optimistic to imagine a return of $ 1.22. As part of the downward trend, we need to keep in mind, in addition to the just low of $ 0.29that area of ​​demand (supply area) weekly to $ 0.168, where the price is likely to come for a small trip. But before that, it’s possible that UOS will make a short stopover in the $ 0.20 / 0.21 range.

Price compression with low volatility

UOS cryptocurrency price against dollar on daily basis
Daily rate for UOS against dollar

On the daily time frame, you can see how the price responds to the levels identified on the upper time frame. Will be back to scenario with a UOS bullish rebound, how far could we imagine a return of the price? Since a return to supply area does not appear to be on the cards, the current price compression could potentially result in a bounce point up to $ 0.54 to fill a Weekly FVG. At best, we can have the bottom of the technical range for $ 0.67 in binoculars. However, I fear that a return to higher levels, especially for an altcoin, seems unlikely given the current market.

Following a potential return to these levels, the trend will still be bearish on a weekly scale. However, the price may also continue to be lower without establishing an upward correction, which will demonstrate the strength of the sellers despite several weeks of decline. So what should we consider next? First, a return on the Equal Low price of $ 0.29.

Thereafter, the price should continue its decline with a return, sooner or later, to the weekly demand zone so that the large wallets can close their losing orders. In this technical zone, the price will probably react sideways. At present, it will be necessary to monitor the price structure. Will we see an accumulation that will materialize in a bullish rebound? Or will we be dealing with a new distribution (at the next local peak), which will result in a continuation of the downward trend? Let us be on our toes to be prepared for possible scenarios when it is necessary to make a decision.

The gaming token in force against bitcoin

UOS cryptocurrency price against bitcoin on a weekly basis
Price of UOS against bitcoin on a weekly basis

To complete our analysis of Ultra (UOS), I find it interesting to take a look at the chart against bitcoin. This determines the situation of the altcoin against the king of cryptocurrencies, whether he is in a position of strength or not. Currently, after a record high of 4,500 Satoshis, the UOS has returned to the level of October 2021. This is a key zone that it has jumped on to continue to perform better at the end of last year. This zone, which is at 1,000 Satoshis, should not be lost if UOS does not want to follow the line from previous weeks: an underperformance against bitcoin.

Can we imagine a recovery in the asset ? Yes, it is possible that UOS is trying to hold back by returning to 1,845 Satoshis (lower limit of the upper gray area). However, the trend will still be bearish on a weekly basis with a low point and a declining peak, which does not bode well for the gaming sector token.

The challenge lies in the area of ​​1000 Satoshis that we have just mentioned. A loss of the latter will lead to UOS weakness in the cryptocurrency market. If bitcoin is to fall, UOS will be much more fragile. Conversely, an increase in bitcoin will not result in an incredible performance of that asset. Thus, two other levels will be monitored in the event of a downward shock:

Here we are at the end of the analysis of the OS! Currently in a situation of price compression, volatility will be back very soon! From now on, you have in your hands all the most important levels you need to monitor, whether you are against dollars or bitcoin. The fragile macroeconomic context and the sideline of risk-activated assets should make you aware of one point: you need to manage your risk as well as possible by being aware of the positions taken on altcoins. Small bullish rejections may occur, but the underlying trend is still bearish for the entire market. There are currently no signs of a reversal of the price in the long run.

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