NEAR Protocol (NEAR) Detailed Analysis
NEAR Protocol Overview:
• Current price: $4.76
• Market capitalization: $5.25 billion USD
• 24 hour trading volume: $321.25 million USD
• 24 hour high: $5.01
• Lowest price in 24 hours: $4.74
• Total Circulating Supply: 1.11 Billion NEAR
• ATH (All Time High): $20.44 (January 2022)
• Drop from ATH: -76.81%
NEAR Protocol is a highly scalable layer 1 blockchain designed to create a developer-friendly environment for building decentralized applications (dApps). NEAR uses sharding technology to enhance scalability, allowing the blockchain to handle large transaction volumes at low costs.
Technical Analysis:
1. Important Support and Resistance Levels:
• Strong support level: $4.74 (low price in the last 24 hours)
• Short-term resistance: $5.00 (important psychological resistance)
• Strong resistance level: $5.50 (next resistance after breaking $5.00)
2. Technical Indicators:
• RSI (Relative Strength Index): Currently, RSI is likely to be near 45, indicating that the market is in a neutral zone, neither overbought nor oversold. This is a signal that NEAR may accumulate or make a slight correction before a clear trend.
• MACD (Moving Average Convergence Divergence): MACD shows signs of moving sideways, there is no clear signal of a strong uptrend or downtrend. If there is an upward cross above the signal line, NEAR may enter a short-term growth period.
• Bollinger Bands: NEAR is currently trading near the lower band of the Bollinger Bands, which suggests that it may be oversold in the short term. If NEAR bounces from this level, it is likely to move towards the middle band, which is around $5.00 - $5.20.
3. Price Pattern Analysis:
• Accumulation pattern: NEAR is forming an accumulation pattern at lows after a long-term correction. The current price is fluctuating in a narrow range, indicating a balance between supply and demand.
• Double Bottom Pattern: If NEAR can hold the $4.74 support zone, the possibility of forming a double bottom pattern is very high, indicating a reversal and growth to $5.20 or higher.
Platform Analysis:
1. NEAR Technology Features:
• Scalability: NEAR uses sharding technology to split data blocks, increasing the ability to process thousands of transactions per second. This allows NEAR to compete with large blockchains like Ethereum or Solana in the dApps and DeFi space.
• Low transaction costs: NEAR boasts low transaction costs, which makes it easier and less expensive for developers and users to access dApps than other blockchains.
• Development friendly: NEAR is designed to be easy to integrate and use for developers, with powerful and friendly development tools.
2. NEAR Ecosystem:
• DeFi and dApps: NEAR Protocol is developing a DeFi ecosystem, including wallet projects, decentralized exchanges (DEX), and lending applications. Some prominent DeFi projects on NEAR include Ref Finance and Meta Pool.
• NFT and GameFi: NEAR is also thriving in the NFT and GameFi space, with projects like Mintbase and Paras attracting the attention of the platform's community of creators and game developers.
3. Partnership and community development:
• NEAR has established many strategic partnerships with major blockchain and DeFi organizations such as Aurora (an Ethereum layer 2 solution running on NEAR) and Octopus Network. These partnerships help enhance compatibility and grow the NEAR ecosystem.
• The NEAR Foundation and the global developer community are also actively supporting the development of new projects, encouraging innovation and participation in the ecosystem.
Market Sentiment and News Analysis:
• News from financial channels: NEAR Protocol is receiving increasing attention from institutional investors thanks to its strong scalability and low transaction costs. However, due to the general crypto market situation being under selling pressure, NEAR price has had a significant correction from its peak.
• Community sentiment: The NEAR community remains very positive, especially with the continued growth of dApps and DeFi on the platform. However, investors are cautious as NEAR is trading significantly below its ATH.
Short and Medium Term Forecast:
Short Term (1-3 days):
• Probability of recovery: If NEAR holds the $4.74 support level, there is a possibility of a recovery towards the nearest resistance level at $5.00 in the short term. Especially if there is positive news from the DeFi ecosystem or NEAR's dApps, the price may break through this level and move towards $5.20.
Medium Term (7-10 days):
• Bullish scenario: If NEAR price breaks above $5.20 and there is strong accumulation at this level, the long-term uptrend could be restarted, with higher targets at $5.50 and then $6.00.
• Bearish scenario: If NEAR fails to hold the $4.74 support level, a deeper correction towards $4.50 is likely, where the next support level lies.
Recommended Trading Plan:
Buying Strategy:
• Buy: If the price holds $4.74, this is a good opportunity to enter a buy order, expecting a recovery from the support zone.
• Take Profit: Set a take profit target at $5.20, with a potential medium-term target of up to $5.50 if the uptrend continues.
• Stop Loss: Place a stop loss order below $4.70 to limit risk in case the price drops further.
Sales Strategy:
• Sell: If NEAR fails to hold the $4.74 support and breaks down, it may be worth considering selling to avoid the risk of further decline to $4.50.
Conclude:
NEAR Protocol is in a correction phase but still holds key support levels. Although the price has fallen from its all-time high, NEAR’s strong technology platform and ecosystem indicate positive long-term potential. With strong accumulation around $4.74, investors can consider buying opportunities with a short-term profit-taking strategy at $5.20 and medium-term at $5.50, while using appropriate stop-loss orders to minimize risk.
