Reasons for the surge
News:
Good news for Middle East capital: Dongfeng Motor signed a strategic cooperation agreement with Saudi giant UMA (company with the same name) to build a "capital + technology + market" trinity alliance. The order for nearly 10,000 vehicles stimulated market associations and triggered capital speculation.
Staking income catalysis: The annualized interest rate (APR) of UMA staking on platforms such as Binance has soared, and the negative funding rate has attracted an influx of arbitrage funds. The daily trading volume has surged by 2000%, driving the price to jump.
Short stampede: The price gap between spot and perpetual contracts widens, and the short squeeze triggers stop-loss orders, resulting in a chain of leveraged liquidations.
Technical aspects:
Breakthrough of key moving average: The daily line strongly broke through the pressure of the 9-day and 21-day moving averages, forming a golden cross in the short term, and the resistance turned into support at $1.2027.
Volume coordination: 24-hour transaction volume increased sharply to $5.17 million, and the turnover rate exceeded 6%, with obvious signs of major players accumulating funds.
Oversold rebound: The cumulative decline in the previous six months was 51.75%, and the historical low of $0.89 formed a strong support, and there is a strong demand for technical repair.
Operation Summary
Short-term: If it stabilizes at $1.50 (previous high pressure level), you can go long with a light position, with the target at $1.80; if it falls below $1.20, stop loss.
Mid- to long-term: Pay attention to the development of synthetic asset tracks, such as institutional entry, cross-chain progress, and if supervision becomes clear, such as the US SEC policy. Pay attention to Big G, and the next issue will reveal how to capture the skyrocketing currencies in advance! $UMA #山寨币热点
