The near-term future of Near Protocol depends on …

With the broader market looking bleak on December 15th, Near Protocol’s NEAR token has attracted serious attention with a gain of over 90% in a 24 hour period. Although the catalysts for this sudden surge were not identified, it has shaken up trade volumes significantly.

At press time, Bitcoin is back below $ 48,000 and most high cap altcoins are trading in the red. So the relevant question now is, is NEAR a good investment?

What’s happening?

After reaching an all-time high of $ 13.1 on October 26th, NEAR began to consolidate and slide towards a descending resistance line in the first week of December, but finally broke on December 8th.

Source: TradingView

In addition, starting December 8th, the trading volume of this altcoin also increased with price. It peaked at $ 42.668 million on January 15, nearly 200% more than the day before. The exact reason for the increase in volume has not yet been determined. However, one possible reason is that MoonPay announced that users around the world will be able to buy NEAR tokens.

Listing events are often bullish and spur rallies. At this point it should be noted that MoonPay has made it easier for potential investors to gain access by announcing support for NEAR. This could partly explain the increase in trading volume as the price rose to $ 17.50 on the same day.

What’s next?

In October, NEAR launched a $ 800 million global ecosystem funding initiative. Supported target groups include social projects, DeFi applications, NFT marketplaces and other industries that are involved in the blockchain and build on NEAR. It basically fueled the story for this coin.

Near Protocol has also set rays of light on the interoperability front. Especially after the partnership with Cardanos Ardana to bridge the interoperability of digital assets. These developments were a major contributor to the coin increasing nearly 750% over the year. The acceptance of blockchain is also increasing as the number of NEAR contracts provided on a daily basis has skyrocketed in recent weeks.

Source: Anatoli

However, having recently hit an ATH above $ 17, NEAR corrected to an intraday low of $ 9.2, down about 7% in the past 24 hours. The long wick on the chart indicates high selling pressure in the market as the price has now fallen below the important $ 10 mark again.

Additionally, NEAR’s low Sharpe Ratio implies that the asset will not perform as well as a “risk free” asset over the same period.

Source: Messari

However, the coin’s growth activity is approaching an all-time high, suggesting healthy development.

Source: Sanbase

So many are wondering if the NEAR discount is a good opportunity?

If this altcoin rises above the $ 10 mark, it is expected to trigger further upward momentum. At the time of going to press, the near-term performance of NEAR is not entirely optimistic given the weakened retail euphoria and the still low Sharpe ratio.

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