The Terra ecosystem over the past week has had a huge nightmare as UST and LUNA both being the native tokens have been heavily discounted. LUNA prices dropped so much that they were very close to Shiba INU prices. There is no doubt that prices have seen some stability at the moment, but the ongoing projects on the Terra blockchain are suffering badly as of press time.
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Mirror Protocol (MIR)
The start of the protocol was extremely bearish as the asset plunged more than 200% since the start of 2022. The downtrend in the early days of 2022 dragged the price down 57% but the major decline ended. produced when the UST lost his ankle. The asset fell sharply by more than 87% and struggled to mitigate the downtrend.
The price of MIR, no doubt, has rebounded nicely from its lows near $0.20, but may eventually manage to hit the resistance at $0.438. However, the bears quickly stepped in and extracted their profits to drag the price towards $0.269 at press time. The technical data is extremely bearish and as a result, prices are likely to fall back below $0.2 in the next few days.
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Anchor protocol
The Anchor Protocol, after falling from levels near $6, triggered its swing into a falling wedge. There is no doubt that the asset broke out of the wedge and rose towards the immediate resistance above $2.24, but the bears dragged the price lower. Additionally, the dump was fueled by the UST unanchor event which reduced the price by more than 100%.
The platform is currently receiving noticeable buying volume, but prices are still failing to break out of the downtrend. The prices are currently under extreme downside pressure and therefore no possibility of a breakout can be expected in the time ahead. Conversely, the technical data suggests the possibility of a breakout after a brief consolidation for a few more days.
Collectively, the projects on the Terra ecosystem have taken an extremely heavy dive, and as a result, the UST unanchoring incident has had a big impact on what was expected. Therefore, if more of the volume goes down, a substantial amount of market capitalization can be completely wiped out from the entire crypto space. And therefore, Terraform labs are bound to come up with a solid recovery plan at the earliest.
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