Near Protocol Gains Strength: Is A Bullish Reversal On The Horizon?

• 1 NEAR reclaimed the top spot in the number of users among blockchains, boasting around 16.3M addresses in the last month. 
• 2 NEAR Protocol price surged nearly 15% in recent sessions and reclaimed the bullish territory above the 20 day EMA.

NEAR protocol price gained traction and reclaimed bullish territory above the 200 day exponential moving average. The bulls awoke after the price crashed near the annual low and initiated a recovery.

The broader market seemed to be under pressure as both Bitcoin and Ethereum were down nearly 1% in intraday today. Selling pressure for the market leaders dragged the NEAR Protocol price lower by nearly 3% in intraday.

Moreover, the NEAR Protocol reported an impressive rise in the number of users which might have factored the price recovery. Let’s analyze combining all the available resources to reach a conclusion about where NEAR price could lead in the upcoming sessions.

NEAR Protocol Reclaims Top Spot in the Number of Active Users!

A recent tweet by Planeta revealed the number of users among the different blockchains. The tweet mentioned that NEAR protocol reclaimed the top spot in the number of active addresses in the last three months.

As per the tweet, NEAR Protocol boasts 16.3 Million addresses, beating other popular chains like Solana, which had 14.6 Million active addresses and Polygon with 9.7 Million active addresses. Arbitrum claimed the fourth spot with 9.57 Million active addresses whereas Ethereum ranked 5th with 6.99 Million active addresses last month. 

Active addresses are a key metric, reflecting the count of users engaging in transactions within a timeframe. A greater number of active addresses suggests enhanced liquidity and attractiveness to investors, indicating a vibrant and engaged network.

What’s Next For NEAR Protocol: Will it Recover or Slump Again?

Now, that some positive news is driving the NEAR Protocol price higher, on the other hand, the weakness in the broader market is dragging the price down again lower in intraday. At press time, the price was hovering at a critical zone that doesn’t clearly suggest a direction.

Now, if the bulls dominate and defend the price above the previous day’s low, the price may show a bullish continuation. On the flip side, if the sellers dominate and drag the price below 50% of the recent recovery, it may indicate a bearish continuation. 

At the time of writing, the RSI line and the 14 day SMA showcased a bullish crossover indicating the possibility of a bullish scenario ahead. However, the RSI and 14 day SMA line need to surpass the mean line to turn bullish in the short term.

Conclusion

NEAR Protocol price has recently surged, moving above the 200-day EMA, signaling a bullish trend after a dip to yearly lows. Despite a general market downturn, NEAR’s active user base has grown to 16.3 million, the highest among other blockchains, which has contributed to its price recovery. 

The price is hovering at a pivotal point. Now, if the price stays above yesterday’s low value, a bullish trend is likely to continue. Conversely, a drop below 50% of the recovery would suggest a bearish trend. The RSI and 14-day SMA indicate a potential bullish outlook, but they must cross the mean line for confirmation. 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.