NEAR Caught in a Strong Uptrend

NEAR is one of the newest cryptocurrencies on the market, and it is already making a name for itself after an almost 1,000% increase over the past three months.

NEAR Protocol (NEAR) is a decentralized application platform created to help developers design their apps. The network runs on a Proof-of-Stake ( PoS ) consensus mechanism and aims to offer scalability and stable fees.

NEAR is the native utility token that is used for:
1. Fees for processing transactions and storing data.
2. Running validator nodes on the network.
3. Governance votes to determine how network resources are allocated.

Similar to BTC , NEAR has a controlled supply. Its current supply stands at just over 300,000. The supply is set to increase by 250,000 annually and reach a total of 1,250,000 after 5 years. Economics tells us that when supply increases, price decreases. Thus this is not a positive aspect at the moment, but it will be so in five years.

NEAR on the Chart
NEAR is currently in an uptrending channel. It has recently hit the upper limit of the channel and now even broken through, indicating that a short-term pullback is imminent.

There is also a bearish RSI divergence indicating a pullback. The Relative Strength Index ( RSI ) is a momentum indicator that oscillates between overbought and oversold. When RSI has a value greater than 70, it is said to be overbought (indicating that it is a suitable place to sell), and when it is below 30, it is oversold (a suitable place to buy). A bearish RSI divergence occurs when the RSI is moving lower while the price is moving higher. This is precisely what happened between the 9th and 10th of March, thus further indicating a short-term reversal.

Looking Ahead: NEAR appears to be in a solid uptrend for the past three months, mostly respecting the channel drawn on the chart. However, due to the price breaching the upper limit and the bearish RSI divergence, it may see a short-term reversal before pushing higher.
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