YEREVAN (CoinChapter.com) -MINA token price has dropped 40% year-to-date to $1 on Jan 8. But bulls haven’t lost all hope despite the active selling spree. Can MINA pull off another leg up? And if so, how high can the bullish target reach? More details below.
MINA Token Price Outlook Bullish
Mina Protocol token has formed a rare technical pattern named the “Broadening Bottom,” best visible on the weekly chart. It resembles a megaphone or a reverse symmetrical triangle. The pattern is formed by two diverging trendlines, where one is ascending and the other is descending. This means that the highs in the stock price are getting progressively higher and the lows are getting progressively lower.
The Broadening Bottom is a reversal setup. Thus, the fact that it formed after a downtrend could indicate a bullish continuation. Notably, MINA token price action retested the upper trendline on Jan 1 but has not yet confirmed the setup by breaking above it.
If a confirmation follows, the target price for MINA would stand at $2.6, or approximately 170% higher than the current value. Meanwhile, it is important to mention that the said target constituted a long-term goal for the bulls and could be reached roughly within the first half of 2024.
However, considering the MINA token’s on-chain metrics, the short-term target is still bearish at $0.86, or 15% lower than the current price. Here are a few reasons behind the assumption.
Bears on a Selling Spree While Bulls Sleep
According to on-chain tracker Messari, MINA’s trading volumes rocketed to a two-year high of $977 million in early January. The network activity alone doesn’t mean much in terms of price action bias. However, combined with the falling price it could indicate an active sell-off phase among MINA bears.
Despite this recent downturn, the Mina Protocol had shown strong performance earlier, breaking its downtrend in late October of the previous year. This led to a significant increase in its market capitalization to $1.24 billion.
Additionally, there’s news about potential collaborations that might involve the Mina Protocol. Sebastien Guillemot, co-founder of DCSpark and Paima Studios, and a key Cardano community member, has spoken about the possibility of collaborations in 2024 between Arbitrum, Cardano, and Mina Protocol.
The partnership could increase the chances for a MINA token price comeback, and confirmation of the Broadening Bottom setup.
