Altcoins
Near Protocol Price is Soaring as it Gets Severely Overbought
Near Protocol price has started the year well. The token’s price surged to a high of $1.8600, the highest level since November 2022. It has jumped by more than 47% from the lowest point in 2022. So, what next for the Near token?
What is Near and why is it rising?
Near Protocol is a leading blockchain project that aims to become the best alternative to Ethereum and Solana. It is a well-funded network that has advanced features, including fast speeds, high interoperability, and low transaction costs.
Near uses a technology that Ethereum hopes to adapt in the coming months. It has been transitioning into a fully-sharded network. Sharding is a technology that makes a network faster by reducing the number of blocks into smaller pieces.
Near Protocol has been used to build several blockchain projects in all industries, including decentralised finance (DeFi), Non-Fungible Tokens (NFT), and the metaverse. Developers are attracted to its network because of its low transaction costs and the friendliness of its platform.
Near Protocol price crashed hard in November when FTX collapsed. At its peak, FTX was the second-biggest cryptocurrency exchange in the world with over 9 million customers and a valuation of over $32 billion. FTX was owned by Sam Bankman-Fried who was also the owner of Alameda Research.
Through Alameda, SBF invested in hundreds of companies. Near Protocol was one of them. Therefore, when the companies filed for bankruptcy, most holders of these tokens sold them. The fear is that FTX will be forced to sell these coins during its bankruptcy.
In a statement on Wednesday, FTX said that it had found new $5 billion in liquid assets that it could sell. Analysts believe that some of these liquid assets could be in the form of Sam coins like Solana and Near.
Near Protocol price prediction
The four-hour chart shows that NEAR price has been in a strong bullish trend in the past few weeks. It rose above the important resistance level at $1.766, which was the highest point on December 13. The token rose above the 25-day and 50-day moving averages. Oscillators have moved to the overbought level.
Therefore, I suspect that the token will continue rising as buyers target the next key resistance level at $2. A drop below the important support level at $1.7 will invalidate the bullish view.
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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