The Mirror Protocol price has crawled back in the past few days as investors cheer the strong performance of the UST stablecoin. MIR price is trading at $0.2210, which is about 50% above the lowest level in May this year. The rebound brings its total market cap to more than $34 million.
What is Mirror Protocol?
Mirror Protocol is a blockchain derivative project that was among the biggest players in Terra’s ecosystem. Unlike Anchor Protocol, Mirror has a platform that enables people to buy and sell a variety of derivatives.
For example, users can buy and sell derivatives like stocks and commodities. The network uses oracles to ensure that data on stocks and other assets is highly accurate. Instead of trading using fiat currencies, the network adopted UST, the algorithmic stablecoin that collapsed last month.
Therefore, the collapse of Terra UST stablecoin led to its collapse as the prices of its assets became unstable. It has not recovered since then.
Mirror Protocol has made headlines in the past few weeks. For example, a report published in May claimed that Mirror was a scam that was set up to scam retail investors. The claim alleged that the platform was created by Do Kwon and his associates to route funds from investors.
Meanwhile, Mirror was recently hacked. It is reported that the hackers stole over $22 million of assets in the network. This was the second hack after the network lost $90 million in October.
The MIR price is rising after the strong performance of UST. The stablecoin is trading at $0.020, meaning that it has risen by over 85% in the past 24 hours. Similarly, the Luna Classic price has risen by 31% in the same period. Still, they remain substantially below their all-time high.
MIR price prediction
The hourly chart shows that the MIR price has made a strong recovery in the past few days. The coin has moved above the important support shown in black. It has moved above the 25-period and 50-period moving averages while the MACD has continued rising.
Therefore, despite the recent jump, there is a likelihood that the coin is still bearish. If this happens, the next key support level to watch will be at $0.20. A move above the key resistance level at $0.25 will invalidate the bearish view.