YEREVAN (CoinChapter.com) – Universal Market Access (UMA) coin price jumped 141% in a day, reaching $5 on Jan 19, the highest value in the previous 16 months. What are the main reasons behind the uptrend and what are the next price targets? Let’s dive.
UMA TVL Through The Roof
The UMA price surge was partially due to the significant Network growth uptrend in total value locked (TVL) and the notable number of new integrations and cooperations. According to the on-chain tracker Dune, UMA’s TVL reached $746 million in the European session on Jan 19.
According to information from DeFi Llama, UMA ranks as the ninth-largest Oracle network globally. It follows other notable networks such as Chainlink, Chronicle, WINKLink, Pyth, and Binance Oracle.
Various blockchain networks utilized UMA’s platform, including Across, Outcome Finance, Polymarket, and Jarvis Network. This usage by diverse networks highlights UMA’s significant role in the blockchain and Oracle network ecosystem.
Additionally, UMA bagged a new partnership with Index Coop on Jan 16, which could have boosted the token’s TVL and price.
The Token Could Lose 13% On Bearish Technicals
UMA could correct in the coming sessions, due to an ‘overbought’ relative strength index (RSI) on the daily chart. In detail, an overbought RSI indicates that UMA may be overvalued and could be primed for a trend reversal or corrective price pullback.
This typically occurs when the RSI reads above 70, suggesting that the asset has experienced significant buying pressure and might be experiencing a price bubble. Investors often view an overbought RSI as a signal to consider selling or at least be cautious about further buying.
For reference, the UMA price corrected down on four separate occasions in the previous two years when the RSI climbed above the 70 threshold. If a correction does follow, the likely target would stand at a previous support/resistance at $3.0, or 13% below the current value.
