NEAR protocol logs 40% overnight in a nonsense rally. What’s next?

NEAR protocol Sankore 2.0 rally
image from medium.com

Key Takeaways:

  • Near Protocol rallied 40 percent for no apparent reason.
  • Bitcoin and a number of major altcoins went through a correction phase.
  • What news does the NEAR ecosystem have?

YEREVAN (CoinChapter.com) – Near decentralized application platform gained over 40 percent on September 7. It scored an all-time high of $10.0, while the rest of the market was bearish. However, there appears to be no solid basis for the rally. Despite the lack of fundamental improvements in the ecosystem, the NEAR/USD exchange rate stood at $8.73 in the London session Wednesday, after a slight correction.

NEAR daily chart

In hindsight, the recent altcoin rally halted during the past few days. The crypto market saw corrections and red candles across charts. Bitcoin (BTC) lost 10 percent in the past 24 hours. Ethereum (ETH) followed with an identical correction. Smaller coins like Cardano (ADA), Dogecoin(DOGE), and Ripple (XRP) lost north of 12 percent each.

NEAR, on the other hand, didn’t comply with the correction wave and rallied over 40 percent. On September 8 the rally subsided and the price action moved sideways, overall maintaining the gained value.

Near Protocol on a rally. Source:NEARUSD on TradingView.com
Near Protocol on a rally. Source: NEARUSD on TradingView.com

NEAR traded in an ascending triangle for the past 2.5 weeks. The swing highs constituted the horizontal line of the triangle. The swing lows formed the ascending trendline.

The ascending triangle is a continuation pattern that typically reinstates the overall bias preceding the formation. NEAR was bullish from July 21 to August 21, so the recent surprise rally played out the technical prediction.

Moreover, the explosive price action resulted in an “overbought” relative strength index (RSI). In detail, the latter is a momentum indicator that reflects the traders’ perception of a given coin.

When the RSI (purple graph at the bottom) jumps to a value higher than 70, investors might consider it overbought and refrain from bets, wishing to secure the gains. Thus, a high RSI could lead to a correction in the upcoming sessions.

Also read: NEAR token grows 14% on ecosystem expansion prospects; is it a good buy?

Any news for Near?

As mentioned, the uptrend had no fundamental basis, to begin with. The most recent developments came on September 2, when the protocol announced its expansion into the African continent. The Sankore 2.0 project became a part of that expansion.

In detail, the project intends to promote regional communities in Nairobi, Kenya. Sankore 2.0 aims to enable startups in local communities and work with authorities on policy and regulation improvement. It also provides technical expertise to enterprises.

Near Protocol sees Sankore 2.0’s mission in promoting tech solutions in the African Continent and “banking the unbanked”. After tweeting about Sankore 2.0, NEAR hasn’t seen any development, except an upcoming AMA session. Human Guild (open group of founders and creators) will host the event and speak to the NEAR team.

Also read: SEC doubles down on crypto exchanges. Is Coinbase next?

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