The conflict in Ukraine has impacted every country and every aspect of the global economy. The DeFi space is no exception.
The native token of the Mirror protocol MIR fell to $0.993. This fall followed the wider sell sentiment in the broader crypto space.
However, the steep fall was soon, two days later, followed by an equally steep rise. The rise amounted to a 40% recovery to finally settle at $1.41. This recovery was not a one-off phenomenon or restricted just to MIR. There was a general, wider recovery experienced by the crypto market. The recovery of the MIR/USD appeared to be larger than that for BTC and ETH. The MIR/USD recovery was also better than for most of the other digital assets.
BTC had earlier fallen to a low of $34,500. It recovered by 17%. ETH had fallen to $2300 and recovered by 25%. Terra(LUNA) at the same time recovered by 50%. Similarly, ANC also recovered by 45% to rise from $2.64 to a level just below $4.
Analysts realized that the recent recovery of MIR has led to the formation of the golden-cross pattern. MIR’s 20-4H EMA rose past its 50-4H EMA. Such a trend usually signals an upward trend only for the short term. This analysis is based on the observations of the market’s recent history.
However, MIR’s RSI rose above 70. This is indicative that it is overbought. This later underwent a correction. MIR has now fallen by 10.5% from its high of $1.41. The fall saw MIR breaching its support level of $1.36 and might drop even further.
Only if it stays above the 20-4H and 50-4H EMA is there a hope of recovery. The recovery also depends on how the Ukraine conflict progresses and impacts BTC. This is because the correlation coefficient between MIR and BTC is near 0.75.