NEAR rose more than 25% on Friday, as speculation grew that the Near Protocol was set to create a rival stablecoin to Terra’s UST. LUNA fell on the news, as Terra Labs plans to buy about $100 million worth of AVAX to bolster its own reserves.
Near Protocol (Near)
NEAR was the biggest gainer during today’s session, climbing over 25% as traders reacted to two recent fundamental developments.
The price hike began yesterday, following the announcement that NEAR had raised $350M in funding from the likes of Tiger Global and FTX Ventures.
On this news NEAR/USD ended two consecutive sessions of decline, and in turn rebounded to the recent resistance of $17.50.
Friday’s high, which broke this threshold, came after speculation grew that Near Protocol would use this funding to create a stablecoin that would rival the likes of Terra.
Looking at the chart, today’s move saw NEAR to an intraday high of $19.64, which is almost 26% higher than Thursday’s top.
Today’s surge pushed the price to its highest level since January 17th, and the 14-day RSI now sits in overbought territory.
If history repeats itself, many will be waiting for a price reversal, however, bulls may be reluctant to give up on existing gains and hold positions.
Terra (Luna)
Despite Terra’s plan to buy $100 million worth of AVAX, Terra (LUNA) was trading lower today, falling for the fourth day in a row.
At the time of writing this, LUNA/USD fell to a low of $98.02 during Friday’s session, its lowest point since March 29.
The price declined as LUNA broke the $101.20 support, causing the bears to put pressure on the remaining bulls.
As seen on March 12, this current level below $100 is an area where bearish sentiment builds up, which could mean the price could drop further.
One positive for the bulls is that the 14-day RSI indicator is currently at 49.99, its lowest point in three months.
If this floor holds steady, we could see a price reversal, and the effect of Terra consolidating its reserves could eventually reflect the price of its coin.
Will LUNA drop this weekend despite Terra’s recent announcement? Let us know your thoughts in the comments.
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