Terra's Mirror Protocol MIR rebounds 40% two days after crashing to all-time high

Mirror Protocol, a decentralized finance (DeFi) protocol built on the Terra blockchain, was hit by one of the biggest meltdowns in financ...

Mirror Protocol, a decentralized finance (DeFi) protocol built on the Terra blockchain, was hit by one of the biggest meltdowns in financial history this week after Vladimir Putin ordered military strikes against Ukraine.

Gathering Terra Tokens

Native token of Mirror Protocol, MIR, fell to $0.993 on February 24, its worst level yet amid a sell-off across the entire crypto market. But a strong rebound ensued, taking the price to $1.41 two days later, up more than 40% from the MIR’s record low.

Four-hour MIR/USD price chart. Source: Trading View

Much like the decline, MIR’s upward retracement came in the wake of similar recoveries elsewhere in the crypto market. But interestingly, MIR/USD yields seemed more important than some of the highly valued digital assets, including Bitcoin (BTC) and Ether (ETH).

In particular, Bitcoin rallied up to 17% after bottoming locally on Feb 24 below $34,500. In contrast, Ether Earnings over the same period came out just over 25% after rebounding from $2,300.

On the other hand, Terra (LUNA), whose protocol hosts the synthetic asset platform of the Mirror Protocol, bounced back more than 50% over the same period.

Interestingly, another token backed by the Terra blockchain, Anchor Protocol (ANC), jumped more than 45% from its Feb. 24 low of $2.64, reaching its best level yet just below $4.

MIR paints a “golden cross” but…

The recent upward boom in the mirror protocol market has also resulted in the formation of a so-called golden cross pattern.

In detail, MIR’s 20-4H exponential moving average (20-4H EMA; the green wave) jumped above its 50-4H EMA (the red wave), a move that typically follows a short-term uptrend. , according to the recent Protocol Market History Mirror.

Nonetheless, four-hour relative strength index (RSI) readings from the MIR – which rose above 70 over the weekend – raised the alarm about its “overbought” status. This coincided with a correction in the Mirror Protocol market, with the MIR now down more than 10.5% from its retracement high near $1.41.

Four-hour MIR/USD price chart with golden crosses and Fibonacci retracement levels. Source: Trading View

The decline took the MIR below $1.36, one of its previous support levels which also converge with the 61.8 Fib line of a Fibonacci retracement chart made from a high of 1, $58 at a low of $1.00.

The price is now eyeing further dips towards the next support levels near the 0.5 Fib line around $1.29, followed by the 0.236 Fib line at $1.13.

Related: Cointelegraph Consulting: A Look at Terra’s Ecosystem

Conversely, if MIR holds above its 20-4H and 50-4H EMAs, its probability of retesting $1.58 could increase. Its bullish outlook also depends on how the ongoing geopolitical conflict in Eastern Europe unfolds and its impact on Bitcoin.

Four-hour MIR/USD price chart showing a correlation between Bitcoin and Mirror Protocol. Source: Trading View

Notably, the correlation coefficient between Bitcoin and Mirror Protocol sits at almost 0.75 above zero, which means that the MIR price more or less reflects the movements of the main digital asset at the moment.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Newsrust - US Top News: Terra's Mirror Protocol MIR rebounds 40% two days after crashing to all-time high
Terra's Mirror Protocol MIR rebounds 40% two days after crashing to all-time high
Newsrust - US Top News
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