Because of variations in the price of bitcoin, the cryptocurrency market has been relatively stable over the previous few days, and most altcoins appear to be underperforming. This article discusses a technical analysis of the NEAR Protocol, as well as a short-term price projection for the cryptocurrency.
As an Ethereum-killer, the Near Protocol has seen rapid growth in recent months, and it takes a novel approach to scalability and performance. Sharding technology is used by Near, as well as Elrond and Zilliqa.
This is a technique for enhancing network speed that involves dividing transactions into many blocks, which are referred to as shards. The so-called nightshade sharding was first made public by the creators back in November of last year.
As investors remain concerned about the tightening of the monetary climate, the Near coin’s price has been faltering in recent sessions. NEAR is presently trading at $9.26, representing an almost 48 percent decline from its peak of Thursday. This action increases the overall worth of the coin to around $5.3 billion, elevating it to the position of the most valuable coin in the world.
While the price of the Near coin has climbed since then, monetary conditions in most countries have tightened, prompting concern among investors. Taking the Bank of England (BOE) as an example, the BOE boosted interest rates by 0.25 percent on Thursday. It has been indicated by the Federal Reserve that three rate hikes will be implemented in fiscal year 2022. According to this, interest rates will be around 0.75 percent by the end of the calendar year.
As a result of this gloomy atmosphere, risky assets have been put on edge. On Thursday, the Nasdaq 100 index, for example, fell by more than 300 points, according to CNBC. Because the vast majority of the index’s component companies are high-tech firms, the index is regarded as a high-risk investment.
Predictions for the Price of the NEAR Protocol in the Short Term
According to the four-hour chart, the price of Near Coin achieved a high of $17.78 in the late afternoon on Thursday. It recouped the majority of its losses almost immediately and is presently trading at roughly $9.26 per share. The coin is now trading slightly below the important $11.05 barrier, which coincided with the coin’s all-time high of $11.05 reached on November 15th.
In addition, it has fallen below the 25-day moving average, and the Relative Strength Index (RSI) has also declined. Moreover, it is only a few cents above the critical support level of $9.58, which was reached on December 3.
Therefore, in my perspective, the Near price is down, but not out of the woods. Indications are that it will most likely recover in the next days. If this occurs, the currency will almost probably retest the important resistance level of $11, which is currently at $0. If the price goes below $8.5, the positive prognosis will be rendered null and void.