UMA Token Sees a Surge in Trading Activity and Market Cap, Indicating Strong Investor Engagement

A decline of 2.7% in the UMA token holders has been recorded in the last 30 days, resulting in a total of 21.39 K holders.

UMA token price surged by 50% from the lows, and a huge concentration of 96% is present among the large holders.

The token’s price depicted a bearish market structure with lower lows. However, the token’s price surged from the lows and broke above the 50-day EMA.

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Moreover, a breakout above the 200-day EMA can be witnessed if the rising momentum continues, and a further surge might be seen in the token’s price.

On the other hand, the 50-day and the 200-day EMAs also traded in a death cross. However, the token’s price broke above the 50-day EMA.

The MACD is neutral on the chart as the MACD and the signal line traded in a negative trajectory followed by a golden cross.

The RSI advanced above the 50-level and broke out above the 14-day SMA, which showed a surge in the bullish momentum of the price.

UMA token witnessed a surge in derivatives volume

The UMA token’s price witnessed a surge in derivatives volume, and the token’s spot volume also advanced.

This indicated the investors’ strong engagement in the token.

The shorts liquidated for the token also valued more than the longs liquidated in the last 24 hours from the press time.

A large number of open positions in the token’s derivatives can also be seen as the open interest has advanced by 204% in just the last 24 hours.

Moreover, the token’s open interest was valued at $22.13M.

Financial Data Overview Of UMA Token

The UMA token has a huge concentration of large holders, resulting in 96%, and its price correlation with Bitcoin is 0.72.

In/Out Of the Money For UMA Token | Source: Ixfi.com

Only 16% of the token holders have been in profit, and 80% of the holders are out of money. Despite being at a loss, 84% of the token holders have held it for more than 1 year.

The token witnessed exchange inflows of $2.05M in the last seven days, while the outlaws have been worth $1.97M. This exhibited investors’ neutral sentiment for the UMA token price.

UMA Token Technical Analysis

The UMA token’s price traded inside a falling wedge pattern. Despite this, the token’s price has advanced by 50% from the lows of 05th July 2022.

The token’s market structure looked bearish as the token price declined over time. Lower lows can be seen on the token chart.

Thus, unless the token’s price breaks above the falling wedge pattern with strong momentum, the volatility in price might remain intact.

UMA/USD Chart by on TradingView.com

Although the 50-day and the 200-day EMAs traded in a death cross, the token’s price broke above the 50-day EMA. A breakout above the 200-day EMA can be witnessed if the rising momentum continues. Also, a further surge might be seen in the token’s price.

The MACD is neutral on the chart as the MACD and the signal line traded in a negative trajectory followed by a golden cross.

The RSI advanced above the 50-level and broke out above the 14-day SMA, which showed a surge in the bullish momentum of the price.

UMA token witnessed a surge

UMA token has seen a surge in trading activity and market cap, indicating strong investor engagement.

Despite recent declines, technical indicators show potential for bullish momentum if key resistance levels are breached. A significant rise in derivatives volume and open interest further supports a possible upward trend for the UMA token.

The support levels for the UMA token are $1.20 and $1.60, followed by the resistance levels of $4.710 and $7.00.

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading

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