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Many people in the cryptocurrency industry expected Mirror Protocol prices to plunge together with UST and Terra Luna. However, despite a 73 per cent price drop in the month of May alone, Mirror Protocol has fared well compared to the two.
One of the reasons why people predicted the Mirror protocol end is because it runs on the Terra ecosystem. The connection between Terra Luna and UST resulted in its fall. Therefore, many expected the relationship between the Mirror Protocol and the two cryptocurrencies would negatively impact it at the same level as the two.
Fortunately for the Mirror protocol, UST was not algorithmically linked to it as it was with Terra Luna. Therefore, each time UST de-pegged, it only affected the minting of Terra Luna. The Mirror Protocol tokens were left untouched, which helped it greatly. If the two coins were algorithmically linked with UST, today, the price of Mirror protocol would be trading more than 99 per cent below its May opening price.
The Mirror protocol has a wide range of uses, including trading tokenized synthetic assets on the Terra ecosystem. Examples of these tokenized assets that you can trade on the platform include real-world company shares such as Netflix and Tesla. Cryptocurrency users can also use it to buy commodities such as gold and wheat.
The Mirror Protocol prices are up by almost 6 per cent in today’s trading session. Looking at the chart below, the prices are trading sideways after weeks of an aggressive downward move. The chart also shows prices are currently bouncing from a recent support level of $0.20.
I expect the prices to continue rising in the next few trading sessions. There is a likelihood of the prices hitting the $0.45 resistance level. This will be a 62 per cent price increase should the prices hit the price level.
However, should the prices trade below the recent support level of $0.20, then my trade analysis will be invalidated. It will also signal a bearish move resumption. There will be a high likelihood of the prices moving further down if they hit the support level.
This post was last modified on May 23, 2022, 17:26 BST 17:26