Terra’s MIR Protocol Rebounds 40% After Crashing To New Low

Terra’s MIR protocol rebounds 40% shortly after crashing to a new low and the move upside had MIR form a golden cross so let’s read more today in our latest altcoin news.

Terra’s MIR protocol or Mirror, a decentralized finance protocol built on the Terra Blockchain was hit by one of the biggest hits in financial history after Vladimir Putin ordered military strikes against Ukraine. The Protocol’s native token MIR dropped to $0.993 which is the worst level in history to date amid a huge selloff across the broader crypto market. However, a sharp rebound ensued and took the price to as high as $1.41 a few days later or up by 40% when measured from the record low.

MIR’s upside retracement came in the wake of a similar recovery somewhere else in the crypto market however MIR/USD returns seemed bigger than some of the highly valued digital assets like ETH and BTC. BTC Ralllied up to 17% after bottoming locally below $34,000 and Ethereum’s gains in teh same period came to be a little over 25% after bouncing from $2300. Terra on the other hand whose protocol hosts the Mirror protocol’s synthetic assets platform, rebounded by 50% in the same period.

Another Terra blockchain-backed token Anchor Protocol increased by 45% which is a new low of $2.64 reaching the best level today below $4. The recent upside boom on the market resulted in teh formation of the so-called golden cross. MIR’s 20-4H exponential moving average increased above the 50-4H EMA which often comes with a short-term uptrend as per the Mirror Protocol’s recent market history. The readings on the MIR four-hour relative strength index also hit 70 during the weekend but alerted me about the overbought status. This coincided with the correction on the Mirror protocol market which saw the token down over 10.5% from the high of $1.41.

The drop had MIR break below $1.36 which is one of the previous support levels that confluences with the 61.8% line on the Fib retracement Graph from the $1.58 swing high to $1.00 swing low. The price eyes more drops towards the next support level near the 0.5 Fib line near $1.29 after the 0.236 Fib line near $1.13. if MIR holds above the 20-4H and 40-H EMAs it is likely to retest the $1.58 or higher. Its bullish outlook depends on how the geopolitical conflict in EU and its impact on bitcoin. The correlation coefficient between BTC and Mirror Protocol sits near 0.75 above zero which means the MIR price is more or less mirroring the moves of the digital asset for the time being.