The UMA price has pared back some of the gains made on Monday as cryptocurrency prices retreat. The token’s price has dropped to $18.50, which is about 22% below its highest level this week. Still, it has risen by more than 15% from its lowest level this week. It has a market cap of about $1.18 billion according to data compiled by CoinGecko.
What is UMA? UMA is a blockchain project that enables people to build decentralized financial products. The term UMA stands for Universal Market Access. Its technology includes features like optimistic oracle, long-short pair (LSP), put/call options, and KPI options.
In the past few months, the growth of DeFi has led to more demand for the UMA token. For one, there are now about 81 projects built on UMA. These projects have attracted a total value locked (TVL) of more than $90.6 million. While still small, the ecosystem has experienced remarkable growth in the past few months.
In the four-hour chart below, we see that UMA has been in a relatively bullish trend in the past few months. This trend has seen it rise to an all-time high of about $24. A closer look also shows that the coin has formed what looks like a double-top pattern whose chin is at $13.86. It has also moved above the 25-day moving average and is between the middle and upper lines of the Bollinger Bands.
Therefore, in my view, we could see some further weakness in the coming days as bears target the lower side of the double-top pattern. If this happens, the next key level to watch will be at around $16. In the long-term, however, the price will likely have a rebound.
This post was last modified on %s = human-readable time difference 05:41