Yerevan (CoinChapter.com) — Mirror Protocol (MIR), a decentralized finance (DeFi) project for real-world asset exposure, jumped as high as $5.47 before correcting downward and settling at $4.52 a few hours later on Monday.
After the bullish 45 percent surge on June 18, the price dropped back to the 50-hour moving average (SMA-50). MIR successfully tested the SMA-50 wave as support, bouncing back for another bullish attempt early in the Tokyo session Monday.
The Relative Strength Index (RSI), which shows the overall momentum of a stock or token, shows no indication of the future direction for MIR. RSI sat at approximately 50, which is a midrange not showing a strong bullish or bearish momentum.
As of the moment, the bullish attempts are capped by the 20-hour exponential moving average(EMA-20) that acts as resistance. The current $4.52 value is a significant support/resistance margin that MIR can use as assistance in confluence with the SMA-50.
MIR/BTC exchange rate
MIR has also surged against Bitcoin (BTC), which is a bullish sign for the token.
It means that given the massive losses Bitcoin experienced in the past week (over 19 percent loss since June 15), traders seek to hedge their assets and find MIR a viable option to do so. In hindsight, Bitcoin slumped after the US Federal Reserve raised its expectations for inflation this year and shifted the time frame for rate hikes from 2024 to 2023.
Moreover, the token held high above the EMA-20, correcting slightly downward in the European session Monday.
The recent rally was fueled by the news of the Mirror Protocol V2 launch, and a new important listing.
What’s behind the rally?
Gemini, the regulated cryptocurrency exchange, announced its support for several Decentralized Finance (DeFi) projects on June 16, including Mirror Protocol, as well as Alchemix (ALCX), Ankr Network (ANKR), and Fantom (FTM). The listing on Gemini is an additional exposure opportunity for MIR, especially considering the recent crypto crash.
Moreover, Mirror Protocol launched the new V2 testnet on June 15. It offered improved incentives for governance participation, new collateral options, and introductions of pre-IPO assets.
Given the fundamental developments behind the Mirror Protocol’s recent rally, the token could continue using its MA-50 as support, gaining bullish momentum.
If MIR manages to hold on to the EMA-20, it could see even more gains, as traders might use the token to hedge against crashing BTC/USD exchange rate. The upcoming sessions will show if MIR maintains the bullish bias or succumbs under the selling pressure from the declining crypto market.