In the past six days, the Mirror Protocol prices have traded sideways, with the past few trading sessions showing reduced volatility in the market. As a result, mirror Protocol is down by less than a percentage point in today’s trading session.
Looking at this month’s data, the Mirror protocol has lost over 70 per cent of its value. The drop is a result of the latest Terra ecosystem crash. Being part of the Terra ecosystem, the Mirror protocol meant that the cryptocurrency prices were dragged down every time UST and Luna lost value. Fortunately, unlike Luna and UST, which lost over 99 per cent of their values, Mirror Protocol’s drop was not as aggressive as the two.
At its core, the Mirror protocol is a decentralised, blockchain-based protocol runs on the Terra blockchain. The protocol allows users to trade tokenised synthetic assets on the Terra ecosystem. According to its documentation, each synthetic asset traded on the platform represents a real-world asset. Users of the mirror protocol can purchase assets such as the NFLX or TSLA shares. They can also be able to trade tokenised commodities such as wheat and gold.
One of the main reasons many experts thought that Mirror would collapse completely is its linkage to UST. Although not algorithmically linked to the stablecoin, synthetic assets minted were still being traded on the TerraSwap exchange. Furthermore, most pairs on the exchange were paired with UST. Therefore, almost all trades were being carried out using UST. However, the drop in UST looks not to have damaged the Mirror protocol in the same magnitude it did for Luna and UST.
Mirror Protocol Price Prediction
Mirror Protocol has traded sideways for the past few trading session. Yesterday, the cryptocurrency opened below the previous day’s closing price by a considerable margin. Therefore, although there was no volatility in the markets, the Mirror protocol ended up closing 15 per cent below the previous day’s closing price.
Looking at the chart below, we can see the recent aggressive drop that resulted in prices breaking the $1 support level. Since then, most trading sessions have closed with a price loss, including today’s trading session, where the prices are down by less than a percentage point. Therefore, I expect the prices to continue with the bearish trend. As a result, there is a very high likelihood that prices will trade below the latest price lows of $0.20.
However, if today’s prices close above $0.4, then my analysis will be invalidated. It will also mean a likelihood of the prices starting a bullish move.
Daily Chart
