NEAR Protocol NEAR Cryptocurrency. SushiSwap coin growth chart on the exchange, chart. High quality illustration
The NEAR price has bounced back after it was punched in the face early this week. The token is trading at $11.85, which is about 24% above the lowest level during the weekend. It has risen by 16% in the past 24 hours, bringing its total market capitalization to about $7.4 billion.
NEAR is one of the fastest-growing blockchain protocols in the world. The network existed in the sidelines for the most part of 2021. It then started gaining momentum when the developers launched the Nightshade sharding process.
Sharding is a process that several blockchain developers have embraced in the past few years. It simplifies how developers build applications and how transactions are handled. In conventional platforms, blocks are processed wholly, a process that can be relatively slow.
In sharding, blocks are subdivided into small blocks known as shards. Therefore, the processing capability of the network is significantly faster. The NEAR protocol expects to conclude the transition to sharding later this year.
However, NEAR is still a small player in the blockchain industry. Data compiled by DeFi Llama shows that there are just a few apps built using the network that have a total value locked of less than $150 million.
The daily chart shows that the NEAR price has been in a strong bullish trend in the past few months. It surged to an all-time high of $20 early this month and has now loft half of its value. NEAR has moved below the 25-day and 50-day moving averages. Despite the rebound, the two averages are about to make a bearish crossover. It is also between the 50% and 38.2% Fibonacci retracement level.
Therefore, this rebound could be a dead cat bounce, meaning that the NEAR price will likely continue retreating in the near term. If this happens, the next key level to watch will be at $8.70, which is along the 61.8% Fibonacci retracement level.
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