Crypto

Mina Price Analysis for August 2023: A successful breakdown?

  • Mina coin has broken down the weekly range that it has been trading in since May 2022
  • Though the conviction in the downtrend seems low, it is making continuous lower lows.

No matter how many transactions are committed to the network, the Mina Protocol intends to be a thin blockchain with a fixed size of just 22 kB. This site should enable everyone to manage a node and contribute to network security without requiring complex computer gear. MINA, the native cryptocurrency of the Mina Protocol, is used to disperse fees among users and speed up network transactions. The team at O(1) Labs, launched in 2017 by Evan Shapiro and Izaak Meckler, developed the Mina Protocol to harness cryptographic computing to offer people control over their digital lives. 

 The MINA token is what the Mina Protocol uses to carry out network operations. Users can opt to stake their MINA to receive a reward while securing the network or swap MINA like any other cryptocurrency. The MINA Protocol also uses MINA as a payment method, which rewards snark workers for validating transactions and encourages block producers to develop new blocks.

Technical Analysis for MINA/USD

Weekly chart

Image source: Traingview.com

On the weekly chart of MINA/USD, the price seems to range from May 2022. It tried to break the range on both sides but failed both attempts (marked by circles). The critical thing to note here is that the price started falling after failing the breakout to the upside. Still, with it, the ADX (average directional index) also started falling, signaling that the conviction in the falling price is not firm. Currently, the price stands below the range. To consider it a breakdown or not will depend upon future price movement. If the price crosses the recent low of $0.545, we can feel a deterioration, and further downfall will arise. On the other hand, if the price rallies back into the range, i.e., above the level of $0.593, we can consider it another fakeout which will result in solid upside momentum.

Daily chart

Image source: Tradingview.com

From observing the daily chart, we identify a bullish cup and handle pattern already broken, a trendline supporting the up rally, and 50 ema (exponential moving average) acting as a resistance to price. If the price breaks out of 50 ema/recent high at $0.524, we can expect bullish momentum until $0.596 and $0.710. However, if the price breaks the trendline and levels of $0.441, we can see a bear run till $0.370 and possibly a new low.

Conclusion

One of the most well-known blockchain projects is the Mina Protocol, and cryptocurrencies with practical applications may naturally be powerful. If the down rally continues, it could be a new low for MINA/USD. Conversely, if it is a fake out, the probability of a decisive bull rally backed by conviction and volume increases. Today’s most profitable and riskiest assets are both cryptocurrencies. Therefore, take appropriate risk management measures before making investing/trading decisions.

Disclaimer

The information in this document is provided for information purposes only. It does not constitute an offer, recommendation, or solicitation to any person to enter into any transaction or adopt any hedging, trading, or investment strategy, nor does it constitute any prediction of likely future movement in rates or prices or any representation that any such future directions will not exceed those shown in any illustration. Users of this document should seek advice regarding the appropriateness of investing in any securities, financial instruments, or investment strategies referred to in this document. They should understand that statements regarding prospects may not be realized. Opinions, Projections, and estimates are subject to change without notice.  

Radhe

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