NEAR Protocol has recently reclaimed the top spot in the number of users among blockchains, boasting an impressive 16.3 million addresses in the last month. This surge in user activity has been mirrored by a nearly 15% rise in NEAR's price, pushing it back into bullish territory above the 20-day EMA. Despite broader market pressures, with Bitcoin and Ethereum experiencing slight downturns, NEAR's robust user growth and price recovery suggest a potential bullish reversal. Could this be the beginning of a sustained upward trend for NEAR Protocol? Let's delve deeper into the factors driving this momentum and what the future might hold.
NEAR Protocol Reclaims Top Spot in Active Users
A recent tweet by Planeta highlighted NEAR Protocol's impressive achievement in reclaiming the top spot in the number of active addresses among blockchains. According to the tweet, NEAR Protocol now boasts 16.3 million addresses, surpassing other popular chains like Solana, which has 14.6 million active addresses, and Polygon with 9.7 million active addresses. Arbitrum and Ethereum follow with 9.57 million and 6.99 million active addresses, respectively.
Active addresses are a crucial metric in the blockchain space, reflecting the number of users engaging in transactions within a specific timeframe. A higher number of active addresses indicates enhanced liquidity and attractiveness to investors, suggesting a vibrant and engaged network.
NEAR Protocol Price Analysis: Bullish Signals
NEAR Protocol's price has surged nearly 15% in recent sessions, reclaiming bullish territory above the 200-day exponential moving average (EMA). This price movement indicates that the bulls have awakened after the price crashed near the annual low, initiating a recovery.
However, the broader market seems to be under pressure, with both Bitcoin and Ethereum down nearly 1% in intraday trading. This selling pressure has dragged NEAR Protocol's price lower by nearly 3% in intraday trading. Despite this, the impressive rise in the number of users might have contributed to the price recovery.
Technical Indicators
At the time of writing, the Relative Strength Index (RSI) line and the 14-day Simple Moving Average (SMA) showcased a bullish crossover, indicating the possibility of a bullish scenario ahead. However, for a short-term bullish confirmation, the RSI and 14-day SMA line need to surpass the mean line.
Key Levels to Watch
The price is currently hovering at a critical zone that doesn't clearly suggest a direction. If the bulls dominate and defend the price above the previous day's low, a bullish continuation is likely. Conversely, if the sellers dominate and drag the price below 50% of the recent recovery, it may indicate a bearish continuation.
Factors Driving NEAR Protocol's Momentum
Several factors are contributing to NEAR Protocol's recent momentum:
- User Growth: The significant increase in the number of active addresses indicates a growing user base, which enhances liquidity and attracts more investors.
- Technological Advancements: NEAR Protocol's focus on sharding and other technological innovations makes it a more efficient and scalable platform for decentralized applications (dApps).
- Market Sentiment: Despite broader market pressures, positive sentiment around NEAR Protocol's user growth and technological advancements is driving its price recovery.
What’s Next For NEAR Protocol: Will it Recover or Slump Again?
The future of NEAR Protocol's price largely depends on market dynamics and investor sentiment. Here are two potential scenarios:
Bullish Scenario
If the bulls manage to defend the price above the previous day's low, NEAR Protocol could see a bullish continuation. The RSI and 14-day SMA crossing the mean line would further confirm this bullish outlook. In this scenario, NEAR Protocol's price could target higher resistance levels, potentially leading to a sustained upward trend.
Bearish Scenario
On the flip side, if the sellers dominate and drag the price below 50% of the recent recovery, it may indicate a bearish continuation. In this scenario, NEAR Protocol's price could face further downward pressure, potentially testing lower support levels.
Conclusion
NEAR Protocol's recent surge in user activity and price recovery suggests a potential bullish reversal. The price is currently hovering at a pivotal point, and the future direction will depend on whether the bulls or bears dominate the market. The RSI and 14-day SMA indicate a potential bullish outlook, but they must cross the mean line for confirmation.
Investors should keep a close eye on key technical indicators and market dynamics to make informed decisions. As always, it's essential to conduct thorough research and consider the risks before investing in cryptocurrencies.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
