Defiye

Defiye is the number one resource for DeFi news, blockchain news and crypto news. Our team of industry leading journalists publishes fresh and breaking DeFi news daily so readers can be sure to stay on top of the crypto market and the defi market, while making the most of their cryptocurrency trading, defi trading and blockchain activities.

Newsletter

Beginning of a New UMA Price Growth is Possible Above $10

Beginning of a New UMA Price Growth is Possible Above $10

The UMA project was launched in late 2018. Digitization of any real assets and their derivatives (futures) is the main task that solves this project. Recently, the project woke up from the “price hibernation”. According to the Coinmarketcap chart, there was a bright recovery of price growth in August 2020.

It was at this point that the rapid development and investment in the DeFi ecosystem projects began. After growing by 370% in 6 days, buyers set a new historical high $30, from which the correction began. Now, the UMA price can stuck in a broad consolidation in the range 70%.

The lower limit of this consolidation has earned attention as a foothold for the pump. After breaking the range $5.52-5.78 in mid-August, buyers were able to keep it under control.

After realizing that there were not enough sellers in the market, the short consolidation turned into a powerful shot. On 7 October, the range $5.52-5.78 again showed the presence of interested buyers. As a result, buyers managed to raise the price by 100% in 2 days.

The second important range is $9.67-10.12. In early September, when the UMA price fell by 60%, buyers were able to stop the total sale in this range.

However, the downward trend has continued and this range is under sellers’ control. Two attempts by buyers to win back the critical point on 9 and 18 October ended in failure. And this fact increases the probability of consolidation continuation scenario.

Given the mood of the crypto market for a correctional fall and TVL index, according to defipulse, there is a high probability to test for strength $5.52-5.58 again.

Alternative scenario

The alternative scenario of UMA price movement is based on breaking the range $9.67-10.12. In this case, buyers will be able to quickly go beyond the upper trend line of the falling channel, testing the mark $15. This scenario can be defended by the fact that the price goes beyond the red line:

The local buyers’ attack is not complete yet, while $7.55 under their control. Looking at the trading volume among DeFi coins UMA is in 9th place with a volume $47,447,488.

This token remains interesting for market participants and can be a good find for investors with the successful development of the crypto market as a whole. In addition, the project is alive and developing. For example, the recent vote of UMA token holders to add the rDAI token as collateral currency:

1 / Last week $ UMA token holders voted to add rDAI as a collateral currency. This allows developers to collateralize synthetic assets with rDay. rDai is composed of Dai earning interest on @compoundfinance. The interest can be streamed to any address. Powered by @rDAI_dao.

Charts courtesy of Trading View

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts