UMA goes ballistic with over 34% day-to-day gains
|- UMA is the best-performing altcoin out of the top-50 coins with over 30% gains.
- The price should stay above $9 to retain bullish potential.
UMA is currently ranked 42nd on Coinmarketcap. However, this was not always the case. A stellar price growth increased its market value to $550 million and pushed it to top-50.
At the time of writing, UMA is changing hands at $10. The token has gained over 30% on a day-to-day basis and over 40% on a weekly basis. The price rebounded from the channel support around $7 on Monday, December 21. As the upside momentum gained traction, UMA broke above the long-term resistance of $9 and tested $13.12, the highest level in the past two months.
UMA, daily chart
What is UMA
UMA, or Universal Market Access, provides solutions for creating assets based on ETH protocol. Basically, the project helps merge the traditional financial industry and cryptocurrency by allowing counterparties to digitize and automate futures, contracts for differences (CFDs), and other derivatives. UMA was launched in December 2018 and stayed afloat with regular updates.
In November, UMA launched a developer mining incentive to allow developers to get ownership of the network. Now the team announced a partnership with a DeFi protocol Yam Finance to leverage its mining program. The projects plan to issue degen derivatives.
Commenting on the news, the Yam Finance team wrote in the blog post on Medium:
This new suite of degen derivatives will begin with UMA’s recent uGas contract and expand into various speculative and hedging products catered to the DeFi ecosystem.
UMA may be vulnerable to the sell-off
From the technical point of view, UMA may retest the former resistance of $9. This barrier may be verified as support before the growth is resumed.
UMA In/Out of the Money Around Price
The In/Out of the Money Around Price (IOMAP) data shows that 192 addresses previously purchased 626,000 UMA tokens between $9 and $8.7, meaning that this area has the potential to slow down the bears. If it is broken, stronger support of $8 will come into view. This barrier separates the tone from a more profound decline to the above-mentioned channel support of $7.
On the upside, a rebound from $9 will create strong bullish momentum and allow the price to retest the recent high of $13. The next bullish target comes at $15.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.