Key Takeaways:
- MIR, the native token of Mirror Protocol, built atop Terra blockchain, rallied 40% in 48 hours.
- InvestorObserver called the asset “bullish,” hinting that MIR might have bottomed out on after the 90% crash.
YEREVAN (CoinChapter.com) – Terra’s Mirror Protocol exploded over 40% in the Feb. 15-16 session, after wiping 90% of its value since the Apr. 2021 top. The MIR/USDT exchange rate stood at $1.47 ahead of the New York session Thursday.
Notably, the token traded in a bullish formation dubbed the Falling Wedge. The latter consists of two converging trendlines with a negative slope. They enclose the price action and effectively prevent breaks in either direction.
MIR broke the formation’s resistance on Feb. 16, hinting at a bullish continuation despite burn-out fears.
Also read: Polygon acquires Mir Protocol for $400M to expand its scaling solutions.
Moreover, the relative strength index (RSI) that previously fell under 25 recovered into the bullish range between 50 and 70. In hindsight, the RSI is a momentum indicator that reflects the traders’ return expectations.
The extremely ‘oversold’ RSI of 25 might have marked the bottom for MIR after plummeting from the April price of around $13.
Has MIR bottomed out?
A market analyst with the Twitter handle IncomeSharks commented on MIR’s rally, calling it a “no brainer.” Furthermore, the analyst noted that Mirror Protocol was at a “tight stop-loss.” The latter is a price level close to the traders’ entry spot, regardless of their risk strategy.
Additionally, IncomeSharks considered MIR’s on-balance volume (OBV). The latter is also a momentum indicator, that uses volume changes to make price predictions. The analyst noted that MIR’s OBV is “showing strength” after breaking out of the resistance.
Also read: Bitcoin drops alongside risky assets, Gold steady as Fed confirms aggressive rate hikes.
Furthermore, data from analytical platform Investors Observer claims that MIR has a “bullish sentiment reading.”
Over the last five days, Mirror Protocol has earned a Bullish rating on the InvestorsObserver Sentiment Score. The Sentiment Score measures the performance of Mirror Protocol over the past five days by volume and price movement.
noted the platform.
The Risk Gauge analysis also stated that MIR was a low-risk investment. Moreover, the results claimed that a big move in low-risk crypto means “a lot of dollars” are moving in and out.
