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NEAR’s strong rebound from the $3.61 support level kept the altcoin’s uptrend firmly in place after it earlier flipped the $3.61 resistance to support. This boosted NEAR’s price recovery after it faced a severe retracement from the $4.58 resistance level.
The growing bullish sentiment in the market is driving the demand for altcoins such as NEAR with Bitcoin (BTC) hitting $64.1k before a slight dip to trade at $61.5k, as of the time of writing.
Let’s take a look at the NEAR Protocol ecosystem and the utility of its native token, NEAR.
NEAR - the "Blockchain for Everyone"
Near Protocol is a Layer 1 blockchain that provides a decentralized platform for developers to create and interact with decentralized applications (dApps). It aims to provide a scalable, user-friendly platform for building decentralized applications, particularly focusing on usability and scalability.
Near Protocol’s defining feature is a technique called "sharding," used to break up the blockchain into sub-chains with different validators working on them, which regularly get connected to one another. This system is designed to improve transaction speed and capacity while ensuring the blockchain continues to scale as more users are added.
Near Protocol is also designed to be compatible with other blockchain networks, allowing for interoperability between different decentralized applications and assets.
Near Protocol’s native token is NEAR which is primarily used for staking, transaction fees, and as a means of exchange within dApps built on the Near protocol.
NEAR Short & Long Term Price Outlook
The bullish rebound from the support level provides a good entry point for traders looking for both short and long term profit opportunities on NEAR.
Short term, NEAR can push on with its current price action to the $4.58 resistance level. This would produce 17% gains for short term buyers. This is heavily influenced by the Moving Average Convergence Divergence (MACD) indicator maintaining its bullish crossover along with green histogram bars above zero.
On a broader view, NEAR’s price trend is firmly bullish as occasioned by the Relative Strength Index (RSI) reading of 64.
For long term buyers, it would be vital for NEAR to clear the selling resistance at $4.58 before further gains can be achieved. Long term buyers can also enter at this price range and take partial profits at $4.58. A bullish candle on the daily timeframe above $4.58 would then serve as a signal for more gains in the long term.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
