This Coin Skyrocketed By 200% Over Last Week; Shall You Buy?

UMA, the native token of the Universal Market Access Protocol, has garnered significant attention from cryptocurrency investors, particularly due to its impressive performance in a market fraught with uncertainty. Over the past four days, the UMA price has skyrocketed by 212%, achieving a remarkable 20-month peak at $6.73. This surge represents a decisive breakout from a prolonged period of accumulation, marking the emergence of a bullish reversal trend that could pave the way for sustained future growth.

UMA Price Escape From Accumulation Trend Hints New Rally Ahead

• A rounding bottom pattern governs the current recovery trend in UMA price.
• A rising price may face overhead supply at $6.92, followed by $8.87 and $13.3
• The intraday trading volume in UMA is $553.7 Million, indicating a 33% loss.

UMA Price| TradingView Chart

For the past 20 months, the UMA Price had been largely trading in a lateral movement, struggling to maintain its value above the key resistance level of $4.25. However, this scenario changed dramatically earlier this week when altcoin experienced a substantial influx of investment. This surge led to a remarkable escalation in its price, soaring from $1.92 to $5.98 – a staggering 210% growth within a week.

This rally could be attributed to the upcoming launch of ‘Oval’- a crypto solution that, UMA is launching around next week that will elegantly reclaim >$100m of free money lost each year to MEV(Maximal extractable value)- stated by UMA Co-founder Hart Lambur in an X Post.

Coinciding with these developments, the Total Value Secured (TVS) in UMA also experienced a significant boost, reaching a new All-Time High of $775 million.

UMA- Total Value Secured (TVS)

On January 19th, the UMA price gave a decisive breakout from the $4.25 resistance, which indicates the buyers escaped from a 20-month-long accumulation. Followed by a retest candle, the coin price is 25% up today projecting its suitability for high growth.

Bullish Reversal Pattern Hints Bottom Formation

A look at the daily time frame chart shows the current recovery in UMA price is developing into a rounding bottom pattern. The chart set often indicates the bottom formation of an asset and promotes gradual accumulation from traders to lead to a new recovery. If this buying momentum continues, the UMA price may present a new entry opportunity with a potential breakout above the $6.92 resistance level.

Under the influence of this pattern, the UMA price is likely to chase $13.37 neckline resistance, accounting for 128% potential growth.

• Bollinger Band: A coin price challenging the upper boundary of the Bollinger Band indicator accentuates the buyers’ aggressiveness.
• Average Direction Index: The high value of ADX(35) reflects the ongoing rally may soon hit exhaustion and trigger a minor pullback to sustain its growth.

Related Articles:

• Bitcoin’s Maintains Lukewarm Performance Amid S&P 500 Record High
• Crypto Headlines of the Week: Bitcoin ETFs Advance, Binance & Terra Propel Speculations
• Crypto Price Prediction For Jan 21: Ethereum (ETH), Solana (SOL), Luna Classic (LUNC)

Source