Can Heightened Social Metrics Drive Momentum In NEAR Protocol

Sep 5

Can Heightened Social Metrics Drive Momentum In NEAR Protocol
The social metrics have surged indicating a heightened user engagement in the asset.
The daily chart highlights the formation of a declining channel pattern with the price hovering near the boundary.

NEAR Protocol price has loomed back towards the recent demand of $3.5 level following the chaos in the broader markets. The Blue chip cryptocurrencies like Bitcoin and Ethereum are slipping towards the lows raising concerns about a further drawdown in the altcoins.

At the time of writing, Bitcoin had wiped out nearly 2.9% in intraday and was headed towards the psychological level of 55K. Whereas, Ethereum traded near $2380 losing 2.8% a day.

Moreover, the NEAR Protocol which had been in a correction phase for the last couple of months seemed to be stabilizing near the recent support amid the broader market's turmoil. Recently, the bulls attempted for a recovery which seemed to be vanishing after the broader market weakened.

Despite all, few on-chain metrics are pointing towards a possible recovery in the asset's price. Let's analyze and try to find whether the drawdown may continue or a recovery is likely in NEAR.
Social Metrics On the Rise: A Recovery is Likely?
The recent sessions saw a price rejection from the higher levels amid the rising investor concerns in the broader markets. However, the analysts have observed a notable change in the social metrics and transaction volume which suggests a recovery might be round the corner.

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The social metrics is an on-chain data including social dominance and social volume. As per the analysts, the social metrics curve was observed to be headed upwards indicating the increasing participation of the social media users.

The social activities including Twitter news, Twitter followers, and social volume (including active users of Telegram and Twitter) reflects how much it is talked about, valued, and sought after by the crypto community.

Moreover, the transaction volume has increased from $130 Million a day to $160 Million at present suggesting a heightened demand in the asset. The volume to market cap ratio at 3.89% indicates low volatility in the crypto.

With a live market capitalization of $4.2 Billion NEAR protocol ranks 20th in the cryptoverse.
Bullish Or Bearish: Where Is NEAR Headed This Month?
The daily chart highlights the formation of a declining channel pattern with the price hovering between the upper and lower boundary of the channel. For the Majority of August, NEAR Protocol's price hovered in a range bounded zone with $3.5 as support and $5 level as resistance.

On the higher side, Near protocol has enough space till the psychological $7 level which is the upper boundary of the channel. However, it required a breakout above the psychological $5 level. The long term trend outlook is on the bearish side which may make it difficult for the bulls to overcome challenges on the higher side.

Also, NEAR price hovers below all the key Exponential moving averages of 20, 50 and 200 days suggesting a weak trend outlook and more favorable condition for the sellers. On the lower side, if the price breaks below the $3.5 level it indicates a bearish continuation and may drag the price towards the $3 level.

The RSI and 14 day SMA line were observed to be flat and hovering below the mean line indicating a neutral to bearish outlook in the short run.