Biggest Movers: Near Surges by Over 25% on News of an Upcoming Stablecoin
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 fell on the news, as Terra labs plans to purchase around $100 million worth of AVAX, in order to strengthen its own 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.
The price surge began yesterday, after it was announced that NEAR had raised $350M in funding from the likes of Tiger Global and FTX Ventures.
This news saw NEAR/USD end two consecutive sessions of declines, and in turn rally to recent resistance of $17.50.
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.
If history were to repeat itself, many will be waiting for a price reversal, however, bulls may be reluctant to give up current gains, and maintain their positions.
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.
As seen on March 12, this current level below $100 is an area where bearish sentiment is heightened, which could mean price could be set to fall further.
One positive for bulls is that the 14-day RSI indicator is currently sitting at 49.99, which is its lowest point in over three months.
Should this floor hold steady, we may see a reversal in prices, and the impact of Terra strengthening its reserves could finally show it the price of its token.
Will LUNA fall this weekend, despite Terra’s recent announcement? Let us know your thoughts in the comments.