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 on 07/04, 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 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.
In the latest updates, LFT has announced about buying $100M worth of AVAX from Avalance Foundation. AVAX will be come the first Layer-1 asset used as a reserved asset for Terra’s UST.
This marks the collaborations between the two foundation:
– Terraform Labs has also revealed that they have traded $100M worth of LUNA for that amount of AVAX.
– Terraform Labs will be making DApps that support UST on Avalanche’s blockchain.
– Terra DeFi Protocols are also considering about cross-chaining to Avalance.
– The two network will develop a whole new gaming subnet, with details are yet to be announced.
→ Subnet and many more protocols from Terra might be launched on Avalanche in the future
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 $92.12 during Friday’s session, which is its lowest point since March 27.
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.