- UMA’s value rocketed 161.5% in a week, hitting a 20-month high.
- A bearish phase engulfs UMA as it faces resistance, dipping 10 % after a bullish surge.
- Technical indicators signal potential UMA price decline if bearish strength grows.
The Universal Market Access Protocol’s native token, UMA, has witnessed an extraordinary surge , catapulting its value by 161.5% in just a week. This upswing pushed its price to a 20-month high, reaching a peak at $6.73 before facing stiff resistance. This surge was a shift from a long period of stagnation to a bullish trend, signaling a potential era of prolonged growth for UMA .
However, in the last 24 hours, bears have had the upper hand, dipping the price from an intra-day high of $6.22 to a low of $5.19, where support was established. UMA was trading at $5.23 at press time, a 10.15% dip from the intra-day high.
UMA/USD 24-hour price chart (source: CoinStats
)
The last week’s rally in UMA’s value can be traced back to several pivotal developments. Notably, the anticipated launch of ‘Oval,’ a revolutionary crypto solution aiming to reclaim over $100 million lost annually to Maximal Extractable Value (MEV), has been a key driver. This innovation, spearheaded by UMA Co-founder Hart Lambur, promises a significant leap in the utility and efficiency of the network.
Moreover, the Total Value Secured (TVS) in the UMA network has soared, reaching an unprecedented all-time high of $775 million. This metric is critical as it reflects the confidence and the amount of assets being secured by the network, further validating the growing interest and trust in UMA.
UMA/USD Technical Analysis
On the UMA/USD 4-hour price chart, the Moving Average Convergence Divergence (MACD) has dropped below its signal line, with a rating of 0.671809. This shift in the MACD trend indicates a possible negative signal for UMA/USD. If the MACD line continues to fall below the signal line, the UMA/USD price could intensify its negative momentum. In addition, the histogram has turned negative, adding to the bearish indication. This pattern demonstrates increased selling pressure on UMA/USD and indicates a likely price decline.
UMA/USD 4-hour price chart (source:
TradingView
)
The Relative Strength Index (RSI) rating of 61.37, below its signal line, contributes to the negative mood for UMA/USD. While the RSI is not yet in oversold territory, the downward movement indicates that purchasing pressure is waning, and prices may fall. If the RSI continues to decrease and falls below 50, it will reinforce the negative mood and may lead to more selling in UMA/USD.
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