Mirror Protocol, a decentralized finance (DeFi) protocol built atop the Terra blockchain, was among the biggest gainers in the last 48 hours, primarily as its native token MIR rallied by over 30% to $1.48, its highest level since Jan. 22.
MIR price rose despite an absence of concrete fundamentals, a sight pretty common across crypto assets.
As a result, its rally may have been purely technically-driven, especially because it originated after MIR had dropped by more than 90% in value from its May 2021 high near $13, making the token extremely oversold.
IncomeSharks, an independent market analyst, called MIR’s rebound move a “no brainer,” noting that its multi-month drop had left bulls with “tighter stop-loss,” i.e., a strategy that traders apply to limit losses when the price falls below a specific price target.
But the Mirror Protocol token could still be bottoming out, IncomeSharks added while citing MIR’s on-balance volume (OBV).
In detail, OBV measures a running total of positive and negative volume. Therefore, the indicator rises when volume on up days is higher than the volume on down days. Conversely, OBV falls when volume on down days is higher. A rising OBV reflects positive volume pressure that can lead to higher prices.
“Large green volume candles coming in near the bottom, super trend 1/2 flipping bullish while OBV is breakout out and showing strength,” tweeted IncomeSharks on Wednesday.
More cues for an extended rebound in the Mirror Protocol market came from a bullish reversal pattern.
Notably, MIR appeared to have been forming a double bottom, a technical setup that occurs at the end of a downtrend and signals that bears, who were in control of the market so far, have been losing momentum.
Notably, the pattern looks like the letter “W” due to its two-touched lows and a change in the direction from downtrend to uptrend.
A basic tenet of the double bottom pattern is that a successful break above its upper trendline tends to send the price further upward — by as much as the maximum distance between its upper and lower levels. Thus, applying the same definition to MIR’s double bottom setup returns with $1.73 as its bullish target.
Related: Mirror opens access to its blockchain blogging platform to all
Additionally, MIR’s daily relative strength index (RSI), a momentum oscillator indicator, shows that it has been treading inside a neutral territory — with a reading around 54. Therefore, the Mirror Protocol token still has room to grow unless its RSI reading reaches 70, a sell signal.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The G7's recent rejection of Libra doesn’t seem to have slowed them down. 1711 Total views 16 Total shares The Libra Association, which oversees the as-yet unreleased Libra cryptocurrency, has chosen a chief financial officer and chief risk officer for the project. Ian Jenkins, who touts experience from HSBC, Santander, and Credit Suisse, will supervise the…
U.K.-based multinational security services company G4S has developed a new service for protecting cryptocurrency assets, the firm announced in an official press release Thursday, Oct. 18.G4S, formerly Group 4 Securicor, has released an “innovative security solution” for holding crypto assets in a form of high-security offline storage protecting customers from hacks. G4S also runs both…
"We’re not trying to grow really significantly, but resources to grow at least six percent to grow our enforcement arm in this space," said Gary Gensler. 129 Total views 1 Total shares Gary Gensler, chair of the United States Securities and Exchange Commission, or SEC, has cited concerns about cryptocurrency enforcement in its budget request…
The Ethereum (ETH) network continues to enjoy the status of being the top smart contract platform in the blockchain industry, but the competition is slowly gaining market share because high costs and network congestion are still challenges for the protocol. One project that has been gaining traction in the month of August is Fantom (FTM), a…
Bitcoin’s hash rate seems to be feeling the consequences of the drama at Bitmain. Bitcoin (BTC) mining activity doesn’t seem to be reacting to the recent price rally that took the asset from approximately $9,000 in early July to almost $12,000 at time of publication.According to data from Coinmetrics, hashrate spiked around July 7 and…
Bitcoin (BTC) and altcoins are tracking the United States equities markets higher on Aug. 3 as traders buy the dip. Smaller investors seem to be making the most of the bear market in Bitcoin as the number of wholecoiners has soared by 40,000 since the sharp fall in June. In comparison, wallet addresses with more…
Spanish cryptocurrency mining startup CryptoSolarTech will return $68 million raised during its initial coin offering (ICO). A screenshot of an official letter sent to investors was posted on Twitter Wednesday, Feb. 20 by Spanish IT lawyer Sergio Carrasco.CryptoSolarTech apparently aimed to build a crypto mining facility powered by solar energy in Southern Spain, but failed…
Monero (XMR) has shown a surprising resilience against the Federal Reserve's hawkish policies that pushed the prices of most of its crypto rivals — including the top dog Bitcoin (BTC) — lower last week. XMR's price closed the previous week 2.37% higher at $217, data from Binance shows. In comparison, BTC, which typically influences the broader…
Entrepreneurs and professionals eyeing Web3 are likely both enthusiastic and wary. While seeming “overnight success” stories are alluring, there’s also no doubt that the crypto and blockchain industry has seen its share of bad actors. Further, the unfamiliarity of the industry’s technologies, methods and philosophies can be daunting to a newcomer. The members of Cointelegraph