Terra's Mirror Protocol shows first signs of bottoming after price gains 30% in 48 hours
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
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