The price of Near Protocol (NEAR) is gearing up for a potential bullish run in the upcoming trading sessions, contingent upon overcoming a critical resistance level. Such demand comes as a surprise to most market analysts since NEAR has long been overshadowed by its competition. Main question now is whether the network can come back to its past activity, riding the wave of the fresh demand.
With this in mind, we take a look at the price of NEAR and its market positioning among fierce competition.
Increasing Inflows into Near Protocol
The NEAR price is receiving bullish signals from traders who have been anticipating a price increase for nearly a month. This optimism is reflected in the surge in Open Interest (OI), with over $100 million worth of contracts opened recently.
Although an increase in OI isn’t inherently bullish, as it encompasses both short and long-term contracts, the positive funding rate indicates that long contracts are currently dominating the market. This suggests a favorable outlook and supports the likelihood of a price rise.
Additionally, NEAR is garnering support from the broader market, as seen in the Relative Strength Index (RSI). The RSI, a momentum oscillator, measures the speed and change of price movements, identifying overbought or oversold conditions in a security.
The RSI typically ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Currently, the RSI for NEAR is holding above the neutral mark at 50.0, placing it in the bullish zone.
Near Price Forecast: Breakout on the Horizon?
At the time of writing, NEAR/USDT is trading at $8.15 and has been moving within an ascending triangle pattern. This bullish continuation pattern, formed by a horizontal resistance line and an upward-sloping trendline, indicates increasing buying pressure.
A breakout above the resistance level would suggest a potential upward trend continuation. According to the pattern, NEAR is targeting a price of $9.9, representing a 31% rally.
Conversely, a breakdown below the uptrend line would result in NEAR falling below $7.0, potentially dropping to $6.5 and invalidating the bullish thesis. Whilst the close future fulctuations are hard to predict, NEAR price prediction models on Gate.io and other platforms indicate solid potential for a rise.
What is NEAR?
Near Protocol is a decentralized application (dApp) platform designed to make it easier for developers to build and deploy applications on the blockchain. It aims to improve scalability and user experience, which are often challenging aspects of blockchain technology. NEAR leverages its own unique consensus mechanism called Nightshade, which is a variation of sharding, a method that allows the network to process multiple transactions simultaneously.
Nightshade divides the network into smaller units called shards, each capable of processing transactions independently. This approach significantly increases the throughput of the network, enabling it to handle a large number of transactions per second. By distributing the computational load across multiple shards, Near Protocol can maintain high performance and ensure quick transaction finality, making it suitable for real-world applications requiring fast and efficient processing.
Additionally, Near Protocol incorporates a novel staking mechanism called Doomslug, which ensures that blocks are finalized quickly and securely. Validators take turns producing blocks in a way that minimizes latency and maximizes security. This dual-layer approach of Nightshade for sharding and Doomslug for block finalization positions NEAR as a robust and scalable solution for decentralized applications.
Competition is fierce
Near Protocol operates in a competitive landscape with several other blockchain platforms aiming to provide scalable and efficient solutions for decentralized applications. Among its primary competitors are Ethereum, Solana, Polkadot, and Avalanche, each with unique features and strengths.
Ethereum is the most well-known and widely used blockchain platform for decentralized applications. It pioneered the concept of smart contracts and has a vast developer community and extensive ecosystem. However, Ethereum has faced scalability issues, leading to high gas fees and slower transaction times. The ongoing transition to Ethereum 2.0, which includes the implementation of a proof-of-stake consensus mechanism and sharding, aims to address these challenges and improve its scalability and performance.
Solana is another significant competitor known for its high-speed transactions and low fees. Solana uses a unique consensus mechanism called Proof of History (PoH) combined with Proof of Stake (PoS), allowing it to process thousands of transactions per second. This makes Solana a strong contender for applications requiring high throughput and low latency. Its growing ecosystem of DeFi projects and NFTs has positioned it as a popular choice among developers and users.
Polkadot is designed to enable interoperability between different blockchains, allowing them to share information and functionality seamlessly. Polkadot’s unique architecture includes a central relay chain and multiple parachains, each capable of supporting its own projects and applications. This setup enhances scalability and allows for specialized chains to cater to specific use cases. Polkadot’s interoperability focus sets it apart from many other blockchain platforms and makes it a versatile option for developers.
Avalanche is known for its high performance and low transaction costs. It uses a consensus mechanism called Avalanche, which enables quick finality and high throughput. Avalanche supports the creation of custom blockchain networks, giving developers the flexibility to design tailored solutions for their specific needs. Its focus on scalability, decentralization, and interoperability has attracted a growing number of projects and users.
Each of these platforms offers distinct advantages and capabilities, making the competitive landscape dynamic and ever-evolving. Near Protocol distinguishes itself with its unique Nightshade sharding and Doomslug consensus mechanisms, aiming to provide an optimal balance of scalability, security, and user experience in the burgeoning field of decentralized applications.
