UMA Price Breaks Accumulation Trend, Indicating Potential Rally
UMA, the token of the Universal Market Access Protocol, has recently gained attention from crypto investors due to its impressive performance. In the past four days, UMA’s price has surged by 212%, reaching a 20-month high of $6.73. This breakout from a period of accumulation suggests a bullish reversal trend and the possibility of sustained future growth.
Rounding Bottom Pattern Indicates Upward Movement for UMA Price
- A rounding bottom pattern is driving UMA’s current recovery trend.
- Possible resistance levels for the rising price include $6.92, $8.87, and $13.30.
- The intraday trading volume for UMA is currently $553.7 million, indicating a 33% loss.
For the past 20 months, UMA’s price has been trading sideways, struggling to surpass the $4.25 resistance level. However, this changed dramatically when the altcoin experienced a significant influx of investment. Its price soared from $1.92 to $5.98 within a week, representing a remarkable 210% growth.
This rally can be attributed to the upcoming launch of ‘Oval,’ a crypto solution by UMA that aims to reclaim over $100 million lost each year to MEV (Maximal Extractable Value). The Total Value Secured (TVS) in UMA also reached a new all-time high of $775 million.
On January 19th, UMA’s price broke out decisively from the $4.25 resistance level, indicating an escape from a 20-month accumulation period. With a retest candle, the price is currently up by 25%, showing potential for high growth.
Bullish Reversal Pattern Suggests Bottom Formation
An analysis of the daily time frame chart reveals that UMA’s recovery is forming a rounding bottom pattern. This pattern often indicates the formation of a bottom and gradual accumulation by traders, leading to a new recovery. If the buying momentum continues, there may be an opportunity for UMA to break above the $6.92 resistance level and potentially reach the $13.37 neckline resistance for a 128% growth.
- Bollinger Band: A coin price challenging the upper boundary of the Bollinger Band indicator accentuates buyer aggressiveness.
- Average Direction Index: The high value of ADX(35) reflects that the ongoing rally may soon exhaust and trigger a minor pullback to sustain its growth.
Hot Take: UMA’s Impressive Surge and Future Potential
UMA’s recent surge in price and breakout from a long accumulation period is a promising sign for investors. With the upcoming launch of ‘Oval’ and the increasing Total Value Secured (TVS) in UMA, there are positive indications for sustained growth. The rounding bottom pattern and potential resistance levels further support the possibility of a rally in UMA’s price. However, it’s important to monitor indicators like the Bollinger Band and Average Direction Index for any potential pullbacks or exhaustion in the rally. Overall, UMA presents an interesting opportunity for crypto investors looking for high-growth assets.
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