Key Takeaways:
- Umbrella Network's UMB token registered a jump of 17,000% on Messari.
- The surge was likely a result of insider trading or an error in data.
- UMB rebounded from Mar 20's fall with a 25% gain on Monday.
NEW DELHI (CoinChapter.com) — Umbrella Network, a decentralized oracle solution, saw its native token UMB’s prices balloon after — as it seems — trader(s) bought and sold UMB consecutively for Wrapped Ether (WETH) on SushiSwap at premium prices.
Due to the trading, data on Messari suggested UMB was trading at $17.3, a jump of 17,064% from the token’s actual price of $0.123. Notably, the real swap cost of 1 UMB was 0.0000407673 WETH on SushiSwap.
Somebody is bidding the Umbrella Network token higher against WETH on the SushiSwap exchange.
The discrepancy in prices could be a result of insider trading. In detail, insider trading involves using material, non-public information to gain an advantage in trading stocks or digital assets.
Interestingly, the volume indicates that the trader or traders have been rapidly selling their UMB/WETH pair to book profits. Conversely, it is also possible the price discrepancy results from an error in Messari’s data. Messari has since corrected its UMB/USD prices.
Umbrella Network’s Hacking Issues
Furthermore, the network also suffered an exploit on Mar 20, losing nearly $700,000. Malicious elements targeted the LP tokens staked on the Polar Stream staking contracts on Ethereum and BNB chains, draining both contracts.
Also Read: Cardano staking reserves surpass $220M for the first time in history.
The hacker reportedly withdrew liquidity using the stolen LP tokens from the UMB-ETH Uniswap and the UMB-BNB Pancakeswap pools. Umbrella Network revealed that the hack resulted from an underflow bug in the smart contract code.
The network announced it would buy back 2.2 million UMB tokens from the open market ‘to counteract the excess amount of tokens dumped by the hackers.’
Umbrella Network would use the 2.2 million UMB and equivalent ETH and BNB to return liquidity to the affected pools- Uniswap UMB-ETH and Pancakeswap UMB-BNB.
As a result, traders might view the recent price discrepancy as suspicious from the recent hack.
The Umbrella Network is a community-owned, decentralized oracle service that provides a secure and scalable solution for DeFi applications. Its native token, UMB, is used for governance, staking, and incentives.
UMB Price Chart
Umbrella Network’s UMB token has been trading below a nearly five-month-long descending trendline. Moreover, the Umbrella token fell nearly 16% on Mar 20, following news of the exploit.
However, UMB registered a comeback on Mar 21 with 25.4% intraday gains that helped the token break above the descending trendline resistance on Monday. Bulls seem active, with long wicks at the bottom of Mar 20 and Mar 22 candles indicating aggressive buying.
The Umbrella Network token price faces stiff resistance from UMB’s 50-day exponential moving average (yellow wave) near $0.14. If the token flips immediate resistance, UMB would likely target resistance at $0.169.
Finally, a sustained uptrend, fuelled by UMB’s move above descending trendline resistance, could see the digital asset challenge resistance from its 100-day EMA (purple wave) near $0.2.
Also Read: Bonfida’s SNS service to be integrated on FTX, but FIDA down nearly 14%.
Meanwhile, the relative strength index for UMB remains neutral, clocking 54.82 on the daily charts. Hence, the Umbrella Network token can continue to move upwards without worrying about its RSI reaching overbought levels.
An overbought RSI is often an indicator of a trend reversal.
