Key Takeaways:
- Mina Protocol price action outperformed its rivals after surging nearly 104%.
- A crypto exchange listing likely drove MINA prices up.
- The spike helped MINA’s price breakout of a bullish technical setup.
NEW DELHI (CoinChapter.com) — Blockchain platform Mina Protocol (MINA) emerged as the winner among its peers after its native token’s price rocketed 104% in 24 hours to reach $0.94 on Oct 24.
The Mina Protocol aims to be a lightweight and privacy-preserving blockchain platform. The protocol utilizes zero-knowledge proofs to create a payment-oriented blockchain that does not require each node to record the complete record of historical transactions.
Moreover, the upcoming developer meetup in Istanbul in Nov. 2023 also acted as a bullish cue for the protocol’s native token. Mina Protocol would likely try to attract developers to build new projects for its ecosystem.
Additionally, Mina Protocol launched a community program to “encourage exploration and innovation” in its ecosystem. The program offers 6 million MINA tokens (over $4 million) in grants to developers.
Additionally, South Korea’s largest crypto exchange, Upbit, announced the listing of MINA’s Korean fiat currency trading pair, MINA/KRW. The announcement stated that traders must use the MINA network to deposit tokens for trading.
Interestingly, South Korean traders are known to pump a token’s price to book profits, such as the recent LOOM price rally. Hence, it is possible that the MINA price’s recent spike was a result of manipulation by South Korean traders.
On-chain analyst Cole Garner noted in an X post that the MINA had the highest accumulation pressure on Oct. 24, surpassing even Bitcoin (BTC). Garner’s observation suggests a “buy the rumor, sell the news” mentality among traders, who went on a buying spree on rumors of Upbit listing.
MINA Breaks Out Of Bullish Pattern
Meanwhile, MINA’s price broke out of a bullish technical pattern called the ‘Falling Wedge‘ as a result of its bull run.
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
One key feature of the pattern is that volumes usually decline as the trendlines converge. The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines.
Thus, confirming the pattern could theoretically see MINA price rally 808% from the breakout level to reach the calculated price target near $4.1. However, the Mina Protocol token price still needs to confirm the breakout. Otherwise, the MINA price might re-enter the pattern, making this a fakeout.
Bears Start Booking Profits After MINA’s Price Spike
Bears started booking profits on Oct. 24, paring some of the day’s gains. The selling continued on Oct. 25, forcing the MINA price to drop over 17% to reach a daily low near $0.63. Despite the drop, the token continues to trade at price levels not seen since April 2023.
MINA’s overbought RSI readings, with a score of 77.87 on the daily charts, might be responsible for the token reversing its rally. Overbought RSI levels have historically preceded a reversal or consolidation phase for assets, which is why traders consider the occurrence a bearish signal.
If the selling continues, the MINA price might drop to the support near $0.6. Moreover, a breakdown below the immediate support might force bulls to defend the 200-day EMA (the green wave) support near $0.49.
A clear break below the immediate resistance could see traders shorting the MINA token, with the 200-day EMA support as the target. 0.94
Conversely, the MINA price would need to break above the immediate resistance near $0.79 to infuse confidence in the rally. Breaking and consolidating above the immediate resistance might help the Mina Protocol token price target the resistance near $0.94 before correcting.
