The Mirror Protocol, a decentralized financing platform (DeFi) based on the Terra blockchain, recently gained some value after one of the biggest setbacks in the history of financial markets and the Russian-led invasion of Ukraine. lost.
According to the Kevin Telegraph, the price of the Mirror Protocol fell to $ 0.993 on February 24 (March 5), the lowest price level so far, while the digital currency market as a whole is facing widespread sales pressure. However, the Token Mirror experienced a strong uptrend and two days later its price reached $ 1.41, which is 40% higher than the lower value of $ 0.993.
Similar to the fall of February 24, the Mirror token jump coincided with the improvement of other digital currencies; But interestingly, the return on Mirror tokens over these few days seems to be higher than other major currencies on the market, such as Bitcoin and Atrium.
Bitcoin rose about 18 percent of the recent decline, which continued at a price level of $ 34,500. Atrium, meanwhile, rose just over 22 percent in the same period after falling to $ 2,300.
On the other hand, LUNA, the main token of the China Terra block, jumped more than 65% over the same period.
Interestingly, the Anchor Protocol, another protocol based on the ChinaTra blockchain, is at more than 39 percent of the February 24 minimum price ($ 5) of $ 2.64 and is now priced at about $ 3. It trades for $ 6.
The recent mutation of the protocol mirror has led to an upward trend. Specifically, the 20-candle moving average (EMA) (green line) during the 4-hour interval reduces the moving average by 50 candles (red line) upwards. Given the recent history of the Mirror Protocol pricing trend, this move is usually followed by a short-term uptrend.
The Relative Strength Index (RSI) in yesterday’s 4-hour period, which reached the level of 70 over the weekend, with signs of “saturation with buying” in the market, predicts a decline from yesterday. This coincided with a price adjustment in the Mirror Protocol, so that the price of the Mirror token reached its lowest level of $ 1,282 yesterday.
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Now the price has returned to the top after reaching the level of 50% Fibonacci correction and again reached the level of $ 1.41. It should be noted that in this analysis, Fibonacci levels are adjusted based on the downward price movement of $ 1.58 to the floor of $ 1.
If the Mirror stays above the moving averages of 20 and 50 Kendalls, the probability of retesting is $ 1.58. Its upward perspective also depends on how the Russia-Ukraine conflict develops and its impact on the bitcoin market.
It is worth noting that the correlation coefficient between Bitcoin and the mirror of the protocol is close to the positive 75%; This means that the prices of Mirror tokens now more or less reflect the movements of the largest digital currency on the market.
The publication Analysis of the price of the token of the Mirror protocol: Ascending sign of the chart appeared for the first time in digital currency.