Key Mirror Protocol Takeaways
- Mirror Protocol’s native token MIR continued its climb Friday in the ongoing weekly session.
- The cryptocurrency was testing a provable descending trendline resistance for a potential breakout.
- Fundamentals favor an extended upside momentum.
MIR, the native cryptocurrency of Mirror Protocol, a synthetic assets platform built on the Terra blockchain, continued its climb, entering the early Friday session in London.
The MIR/USD exchange rate surged 9.85 percent to $10.525, almost negating the losses it incurred during the mid-week session. At its intraday high, the pair was changing hands for $10.55. The solid upside moves raised the possibility that MIR continues its climb further into the weekend session.
What’s Driving MIR Upward?
A confluence of technical and fundamental factors supports MIR’s bullish sentiment. At first, the token attempted to break above a short-term descending trendline resistance that constitutes a Symmetric Triangle pattern. In retrospect, Symmetric Triangles are bullish continuation patterns during an uptrend. Before consolidating inside the said structure, MIR had rallied almost 300 percent (data from OKEx).
Of course, MIR/USD is a young trading instrument that went live on January 30. The pair lacks enough historical data that could help analysts gauge an accurate bias for the underlying token, MIR. Nonetheless, given Mirror Protocol’s escalation in the blockchain industry recently, especially after Binance, one of the world’s largest cryptocurrency exchange’s endorsement, the project promises organic growth for its early investors.
A Robinhood Competitor?
Researchers at Messari, a crypto-focused data aggregator firm in New York, compared Mirror Protocol with Robinhood, primarily because of its protocol’s ability to offer a censorship-prone trading infrastructure. The research was released on February 18, 2021. Its author Ty Young noted that decentralized finance protocols like Mirror have “immense potential to expand access and use cases around traditional financial assets and the globe.”
“The synthetic asset protocol is slowly closing the gap between mainstream and decentralized finance while also bringing asset tracking and ownership into the digital age,” wrote Mr. Young. “US equity brokers have structural limitations that prevent more individuals from accessing their markets or leveraging their full value.”
Mirror’s ability to compete with Robinhood, especially as the US trading platform grapples with potential strict regulations following January’s GameStop fiasco, tends to increase demand for its MIR tokens. That serves as one of the reasons why Binance decided to add MIR to its Innovation Zone.
Meanwhile, the Symmetric Triangle breakout remains skewed to the upside for the very same reason.