- UMA price consolidates in a descending triangle pattern, awaiting a clear trend to establish.
- A close above the triangle hypotenuse projects a 35% upswing UMA price.
- Mounting bearish pressure could trigger a sell-off pushing UMA down to $17.
UMA project announced the launch of a new incentivization mechanism called KPI Option via air-drop. An interesting inclusion was that the token being air-dropped would be distributed to a “curated” list of addresses in DeFi.
UMA platform unveils new incentivization mechanism
UMA’s incentivization mechanism called “KPI Option” is pegged to community growth. Hence, higher network growth would yield higher returns for users holding these options. Therefore, UMA protocol will distribute these tokens to a selected list of DeFi addresses that can do just that.
Similar to “options contracts” in traditional finance, the airdropped options are redeemable and will have an expiry date. For now, the announcement details that UMA platform’s TVL determines its value. If TVL hits its target of $2 billion, each of these incentive tokens can be redeemed for 20 UMA. The token’s value at redemption will increase linearly after the first target is hit.
As the name indicates, various KPI options can be created by linking other key performance indicators like trading volume, DApps’ daily active users, etc.
The project noted that the list information on redeeming the KPI tokens and the selected list of addresses would follow.
UMA price on the heels of a 35% breakout
UMA price was forming a descending triangle pattern on the 1-hour chart. This technical formation forecasts a target of 37%, which is obtained by measuring the triangle height and adding it to the breakout point.
A high volume breakout leading to a one-hour candlestick close above the triangle’s hypotenuse would invalidate the SuperTrend indicator’s sell signal and establish a bullish trend. This would result in an upswing towards the target at $40.
UMA/USDT 1-hour chart
However, an increase in selling pressure here could push UMA below the 200 one-hour Exponential Moving Average (EMA) around $27.40. This would indicate a breakdown of the descending triangle pattern and trigger a sell-off towards the bearish target at $17.
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