- Excitement for NEAR waned as DEX volume and contract deployment slowed.
- The token’s momentum was neutral after leaving an overbought region.
Close protocol (NEAR) investor bias was largely positive on Feb. 15, according to Santiment. However, data from the on-chain analytics platform showed that its weighted sentiment had left the region above zero, settling at -0.261 at press time.
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Setbacks in contracts
Weighted sentiment acts as an enhanced version of single social volume and measures the broader perception of an asset. Therefore, the decline means that investors were no longer enthusiastic about NEAR’s near-term outlook. But what else led to the downfall?
According to Artemis, Near Protocol enjoyed a surge in exclusive contract deployment with a full month high on January 30th. Deploying contracts over a protocol like NEAR implies that multiple dApps can interact with each other while transactions move smoothly from one smart contract to another.
However, the Crypto Metrics Dashboard showed that contract deployment has slowed dramatically. As of February 13, the exclusive contracts deployed on the Near Protocol mainnet number 149.
Another notable part of the NEAR ecosystem was its volume of Decentralized Exchanges (DEXs). Artemis revealed that token volume on these exchanges had been static since February 20. That steady point was in line with the view that investors had dampened the initial euphoria.
Advance signs in jail pointed out some bright aspects of the project. To date, development activity on the NEAR chain has improved to 24.24. The increase in the metric inferred that the Near Protocol team was active with their public Github repositories.
Likewise, its social dominance, which weighs the share of discussions based on social data and hype, has increased. At the time of writing, the metric is at its weekly high of 1.343%.
Volatility expansion on the NEAR side
With regards to price, CoinMarketCap showed that NEAR changed hands at $2.52. Interestingly, this was the same value as 30 days ago. But is there hope for an improvement from this point?
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Based on the daily chart, NEAR’s volatility was adjusting to expanding volatility swings. This was revealed by the Bollinger Bands (BB). However, indications from the BB revealed that NEAR had exited the overbought region as the price no longer touched the upper band.
On the Relative Strength Index (RSI) portion, momentum was relatively neutral at 54.55. However, a further dip below this zone could trigger bearish momentum in the short term.