- Summary:
- Why has the Mirror Protocol price collapsed? We explain what to expect now that the MIR has declined to a record low.
This week, the Mirror Protocol price has been punched in the face as demand for the coin declined during the Terra USD implosion. As a result, the MIR price dropped to an all-time low of $0.2766, which was substantially lower than the all-time high of $11.42. This means that the coin has crashed by more than 97%. In addition, other popular Terra-related cryptocurrencies like Anchor, Lido, and Astroport have also crashed hard.
Mirror Protocol is a decentralized platform that enables people to buy and sell synthetic assets in industries like stocks, commodities, cryptocurrencies, and even forex. The network uses oracles provided by Chainlink to enable people to trade these assets in a decentralized manner. Mirror Protocol had assets worth more than $1 billion at its peak.
Now, without a fault of its own, the Mirror Protocol has imploded as its total value locked has dropped to just $245 million. This decline happened because Mirror was built using Terra, meaning that UST was the primary currency for trading in the ecosystem. Unfortunately, UST lost its peg this week and dropped to as low as 25 cents. As a result, the value of the holdings in Mirror also declined. So, will the MIR price recover?
Mirror Protocol price prediction
In my last MIR price prediction, I warned that the coin would likely have a bearish breakout in the near term. Obviously, at the time, it was hard to predict the crash that happened in Terra LUNA and UST. However, looking at the daily chart, we see that the coin has crashed hard recently. It even crashed below the important support level at $0.98, where it failed to move below earlier this year.
At the same time, the Mirror Protocol price has gotten significantly oversold. This is evidenced by leading oscillators like the Relative Strength Index and the Stochastic Oscillator. Now, from a technical perspective, such large drops are usually followed by a relief rally as investors rush to buy the dip. This scenario is known as a dead cat bounce.
If this happens, the next key resistance level to watch will be at $0.5. The view will become invalid if the coin falls below $0.20.
