MINA’s significant upward movement was aided by a $92 million token sale round, a Coinbase listing, and a general crypto market recovery.
MINA, a utility token backed by the same-named “lightweight” smart contract platform, has maintained its upward trend nine days after rebounding from $1.58, its lowest point to date.
As traders assessed a high-profile investment round involving the sale of $92 million worth of MINA tokens to Three Arrows Capital, FTX Ventures, and other venture capitalists, the coin soared by roughly 75% to $2.75 on March 24.
Because altcoins often move in lockstep with Bitcoin, an overall rebound feeling in the crypto market also aided in pushing MINA’s price upward (BTC).
Furthermore, Coinbase’s announcement on March 23 that it would be adding MINA support to its crypto exchange may have enhanced its upside potential among traders and investors.
“If liquidity conditions are met, trading will begin on or after 9 a.m. PT on Thursday, March 24,” Coinbase explained.
Is MINA about to hit rock bottom?
The recent buying craze in the MINA market followed a protracted period of violent selloffs, with the price per token plummeting from a record high of $6.71 on Nov. 11, 2021, to $1.58 on March 15, 2022, a drop of about 76.50 percent.
Nonetheless, based on three widely-followed technical setups: growing volumes, significant moving averages, and a price-momentum indicator, MINA’s ongoing upside retracement has been showing symptoms of bottoming out, i.e., the end of its November-March bearish cycle.
MINA’s recovery has seen it break above its 20-day and 50-day exponential moving averages, respectively (the green and red waves in the chart above). Meanwhile, the upward movement was accompanied by an increase in trading volumes, indicating that traders and investors were confident in the rally.
MINA’s Moving Average Convergence Divergence (MACD; blue wave) also went above its zero line, indicating a positive trend.
MINA, on the other hand, was at risk of a retreat as its relative strength index (RSI) approached the overbought benchmark level of 70 and the price encountered interim selloff momentum near its 100-day simple moving average (100-day SMA; the purple wave in the chart above) of $2.72.
MINA price: critical levels to keep an eye on
The 100-day SMA also coincided with the 0.236 Fibonacci retracement line (around $2.79) of the Fibonacci retracement structure — formed from the $6.71 swing high to the $1.58 swing low — adding another layer of resistance to MINA’s rising aspirations.
As a result of the overbought RSI signal, a good pullback move might see MINA test its 20-day and 50-day EMAs as temporary downside targets, with an extended selloff bringing $1.58 back into sight.
A decisive rise above the $2.36-2.72 resistance range, on the other hand, might initially drive MINA’s price beyond $3 — a psychological upside target — before extending to the 0.382 Fib line above $3.50.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.