The NEAR price has suffered a harsh reversal in the past few days as it enters a profit-taking phase. The token is trading at $17.82, which is about 15% below the highest level this week. Still, the coin has risen by more than 1,000% above the lowest level since July. As a result, its total market capitalization has risen to over $10 billion.
The NEAR Protocol has been a key shining star in the past few months. While most cryptocurrencies like Bitcoin and Ethereum have retreated sharply recently, NEAR has hit its all-time high. As a result, it has become one of the biggest cryptocurrencies in the world.
The strong rebound is mostly because of a number of factors. First, NEAR is going through a radical change that will make it faster for Web 3 developers. The developers launched the nightshade sharding upgrade that will make it faster than Ethereum and other networks.
Second, its strong rebound has pushed investors to embrace a fear of missing out (FOMO). FOMO is a situation when investors buy an asset simply because its price is rising. This is a relatively common thing we have seen in cryptocurrency for years.
Third, last week, NEAR developers received $150 million from investors such as Three-Arrows Capital, Dragonfly Capital, a16z, and Circle Ventures. It raised these funds through a token sale.
NEAR price prediction
The daily chart shows that the NEAR price has been in a bullish trend in the past few months. This rebound has made it one of the best performing cryptocurrencies in the world. A closer look shows that the network has risen above the 25-day and 50-day moving averages.
The coin moved above the important resistance at $17.90, which was the highest level on December 15th. It has now retested that level. Its Relative Strength Index (RSI) has moved from 67 to 57 and is pointing lower.
Therefore, there is a likelihood that the NEAR Protocol price will keep falling as the coin moves to its distribution phase. On the flip side, a move slightly above $20 will invalidate the bearish view.
