UMA Price Up 15% – Good Time To Buy UMA Coin?
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Universal Market Access (UMA) is an Ethereum-based blockchain protocol that has gained traction in the last few weeks. Its niche as a synthetic assets facilitator in the decentralized finance (DeFi) space is pushing investors to buy UMA coins.
But like most cryptocurrencies, the UMA token is a highly volatile crypto asset. The fact that the digital token has rallied does not mean you should buy UMA. In this article, we explore the UMA protocol and its prospects in the market.
UMA: Synthetics Asset Creator
The second most valuable cryptocurrency Ethereum is popular for its DeFi capabilities and this has seen it become a highly-sought after crypto project. However, there is a new crypto protocol that is looking to carve a niche for itself in the fast-rising synthetic assets field and that is UMA.
Built on the Ethereum blockchain, UMA enables developers to build synthetic assets for DeFi use. UMA wants to enable anyone to design and create self-executing financial contracts secured by economic incentives and run on the Ethereum network.
According to the development team, it wants to make the financial derivatives market available for anyone to use.
It does this by digitizing and automating real-world financial derivatives, including futures, contracts for differences (CFDs) or total return swaps. Self-executing and self-enforcing derivatives contracts of digital assets are also covered.
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UMA Price: Ending June On A High
UMA is not one of the top fifty cryptocurrencies. According to popular crypto data aggregator website coinmarketcap, it currently sits on the 89th position with over $663 million in market cap. Meanwhile, the closing days of June have seen the synthetics token rally two digits.
At press time, UMA currently trades at $10.37 up 15.46% in the last 24 hours. UMA’s significant increase in the last few hours has attracted crypto investors who want to buy UMA.
However, UMA has also experienced a downtrend that has dogged the broader crypto market. Following a stellar start to the year, UMA traded at an all-time high (ATH) of $33.78 on Feb. 4 before losing momentum a few days later.
The following month, UMA sought to reclaim its former glory but traded below the $30 mark at $27.23 before hitting a month-low of $19.25.
April seemed a good time for the UMA token as the crypto industry was booming. UMA surged with the wider market and traded at $32.85 on April 18 but saw most of its gains lost following another market crash.
With the wider crypto market consolidating in May, the UMA token lost more than 50% of its value. Even though it entered the month of June with a less-than-palatable price, UMA has come a long way posting double digits on its quest to shoot up the crypto ranks.
UMA Technical And Fundamental Analysis
Bitcoin plays a crucial role in the crypto market. Aside from the fact that it is the largest crypto asset by market cap, crypto investors associate the first crypto asset with cryptocurrencies generally.
Therefore, a Bitcoin rally is always seen as a win for the burgeoning industry. Even though the large-cap virtual currency has been posting negative price action since a fallout with Tesla, it surged 5% rallying to $35,561.59 before encountering resistance on the $36K mark.
This has helped UMA rally as well. On the trading chart, UMA is bullish according to the 20-day moving average (MA) support as it is trading above the indicator at $10.232. Its relative strength index (RSI) currently stands at 46.33 and climbing showing investors want to buy UMA.
However, three days earlier its RSI stood dangerously close to the oversold margin at 34.66. This shows that several investors rushed to buy UMA following its positive price action.
Analysts are also bullish in the long-term growth of the DeFi platform. According to Digitalcoin, UMA may rally to $15.66 by the end of the year.
Meanwhile, UMA partnered with crypto derivatives protocol Opium to launch insurance products for SpaceX flights. According to the announcement, Opium and UMA are collaborating to provide financial derivatives risk mitigation for the space company flights. This will see customers covered in the event of a failed launch.
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