NEAR Protocol Price Forecast: Buy the Dip?

The NEAR protocol price has held steady in the past few days even as most cryptocurrencies has crashed. The protocol is trading at $15, which is a few points below the all-time high of $17.60. It has jumped by more than 890% from its lowest level in July. That has brought its total market capitalization to more than $9 billion, making it the 22nd biggest cryptocurrency in the world. 

NEAR Protocol is a leading blockchain project that has become a leading platform among developers. The platform uses the sharding technology, which makes it faster than Ethereum and other Ethereum-killers like Avalanche and Solana. 

This year, the protocol will be in the spotlight considering that developers will continue with the transition to sharding. Phase 1 will be launched in the first quarter. This phase will introduce the role of chunk-only producers, who will validate just one shard. 

The ecosystem will also continue expanding, considering that the developers announced a $800 million funding program. Still, it has a long way to go considering that DeFi projects in the ecosystem have a total value locked (TVL) of less than $200 million. In contrast, Ethereum has a TVL of more than $150 billion.

NEAR Protocol price prediction

The daily chart shows that the NEAR price has been in a strong bullish trend in the past few months. Despite the recent slump, the coin is slightly above the 25-day and 50-day moving averages while the MACD is above the neutral level. It is also above the key support level at $13.16. It has also formed what looks like an ascending channel pattern.

Therefore, I suspect that a relief rally will happen in the near term as bulls target the upper side of the ascending channel at about $17.75. A drop below the support at $14 will invalidate the bullish view.