Mirror Protocol (MIR) jumps 53% in two days but bears spoil the party

Key Takeaways:

• Mirror Protocol’s native token jumped 53% since Friday, painting a golden cross on its 4-Hour charts.

NEW DELHI (CoinChapter.com) — Mirror Protocol, built on the Terra blockchain, seems to be following in Terra’s footsteps. The protocol’s native token, MIR, jumped 53% between Friday and Saturday before bears moved in on Sunday.

Terra’s LUNA token also gained more than 52% in the current week, defying the wider crypto market downtrend due to Russia’s invasion of Ukraine. Mirror Protocol dropped to a low of $0.994 on Feb 24 before starting a recovery rally.

The $0.994 price level is an all-time low for the protocol. Afterward, the MIR token reached a high of $1.6 by the end of trade (UTC) on Feb 26, before the bears moved in on Sunday, dragging down prices. The relative strength index did not foray into overbought regions on the daily charts.

Mirror Protocol’s 4-H Price Charts

Earlier, on the 4-hour (4H) charts, the uptrend painted a golden cross between MIR’s 26-4H exponential moving average (white wave) and the token’s 200-4H moving average (red wave). In detail, a golden cross occurs when a short-term moving average moves above a relatively long one.

Also Read: Mirror Protocol ‘supertrend’ begins as MIR price rebounds hard after 90% crash

The golden cross often follows up with a short-term uptrend. However, as MIR entered Sunday, it fell prey to aggressive selling from the bulls.

Furthermore, the token’s four-hour relative strength index had reached overbought levels on Feb 26. The Mirror token reacted in a textbook manner, as MIR prices started correcting when trading began on Sunday.

Since then, MIR fell nearly 14% to reach $1.316. MIR has immediate support from its 26-4H EMA line near the $1.29 price level. If bears continue to book profits, the token could fall to support from a confluence of 100-4H MA (yellow wave) and 200-4H MA (red wave) near the $1.24 price level.

Finally, Mirror Protocol’s 50-4H MA line (violet wave) acts as support near $1.2. The short-term RSI for MIR is neutral, clocking 51.94 on the 4-H charts.

MIR’s MACD Likely To Turn Bearish Soon

Meanwhile, trend-based momentum oscillator MACD showed weakening bullish momentum on the short-term chart. As trading progressed on Sunday, the 4-hour MACD charted contracting positive bars on its histogram.

Also Read: Terra’s LUNA to reach $200 by year-end, says analyst.

In detail, the MACD histogram charts the difference between the MACD line (12-4H EMA and 26-4H EMA difference) and the MACD signal line (9-4H EMA of MACD). Contracting positive bars indicate the MACD line is moving towards its signal line and would likely cross below it soon.

If MIR rallies upwards from current support, it would first flip immediate resistance at $1.37 before moving on to challenge resistance near the $1.44 price level. A market-wide buying action would likely push Mirror near resistance at $1.5 before price pare.

At the time of writing, MIR was trading at $1.294, down 16% on the day.