NEAR rallied by over 25% on Friday, as speculation grew that Near Protocol was set to create a rival stablecoin to Terra’s UST. LUNA dropped on Friday as Terra Labs announced plans to buy around $100 million of AVAX in order to increase its reserves.
Near Protocol (NEAR).
NEAR was the biggest gainer during today’s session, climbing by over 25%, as traders reacted to two recent fundamental developments.
Yesterday’s price explosion began after NEAR received $350M funding from FTX Ventures and Tiger Global.
NEAR/USD saw its declines stop for two consecutive sessions and then rallied up to the $17.50 resistance.
Friday’s high, which broke this ceiling, came after speculation grew that Near Protocol would be using this funding to create a stablecoin that would rival the likes of Terra.
Looking at the chart, today’s move saw NEAR hit an intraday high of $19.64, which is almost 26% higher than Thursday’s top.
Today’s surge pushed prices to their highest level since January 17, and comes and the 14-day RSI now sits in overbought territory.
History could repeat itself. Many will wait for the price to reverse, but bulls might be unwilling to surrender their gains and keep their position.
Terra (LUNA)
Despite Terra’s plans to buy $100 million worth of AVAX, terra (LUNA) was trading lower today, falling for a fourth straight day.
As of writing this, LUNA/USD fell to an intraday low of $98.02 during Friday’s session, which is its lowest point since March 29.
The drop in price came as LUNA’s support level of $101.20 was broken, which then led bears to pile on the pressure on remaining bulls.
This current price level is below $100, as seen March 12. It is an area in which bearish sentiment has heightened. Price could fall further.
Bulls have a positive news: The 14-day RSI indicator currently sits at 49.99. This is the lowest level in more than three months.
This floor should hold, as prices may reverse, and Terra’s reserves strengthening could lead to Terra finally being able to show its true price.
Will LUNA fall this weekend, despite Terra’s recent announcement? Please share your views with us in the comments.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.