NEAR reminded users of the AI related background. Price analysis showed lower relative strength and the formation of a bearish divergence.
Artificial intelligence (AI) is undoubtedly the biggest trend in 2023. So much so that investors are now interested in AI-related crypto projects. The NEAR protocol [NEAR] has jumped on this hype by reminding the world that it has been researching or helping the development of AI for quite some time now.
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NEAR revealed that its NEAR Cloud dApp, which housed thousands of users from around the world, has been working on AI for a while now. It was also one of the oldest apps on the NEAR protocol. The dApp has been running since 2021 and is used to label data points, which is then used to train machine learning models.
💡@NEARProtocol can serve as an infrastructure that empowers the next generation #AI use cases.
It creates a layer of value for setting rules and pricing data, which can be used by different apps and protocols in an open, fair and transparent way. 🌐
— NEAR Blockchain (@NEAR_Blockchain) February 8, 2023
NEAR has therefore been working on AI development for almost two years. But will this propel NEAR to short-term or long-term performance? Perhaps a look at some of its on-chain performance metrics can provide some clarity.
NEAR’s development activity has been at a significant standstill for the past two weeks and has cooled down by the time the publication went to press. It previously experienced a period of strong development since the beginning of January 2023.
Source: Sentiment
But a decline in development activity is not the only slowdown observed. NEAR price volatility has also decreased significantly since the last week of January to a new monthly low at press time. In terms of investor sentiment, things don’t look much different.
NEAR’s Binance funding rate has remained unchanged for the past few days as of this writing. This suggested that investor sentiment in the derivatives market remained uncertain. Meanwhile, weighted sentiment has fallen since the start of the year, confirming that investors have tended to the bearish side.
Source: Sentiment
NEAR still gained significantly despite the bearish sentiment, especially in the last two days to time of writing. For example, the market cap is up more than $288 million in the past 48 hours at the time of going to press. This allowed NEAR to reach a new high in two months.
Source: Sentiment
Realistic or not, here is NEAR market cap in terms of BTC
There can be a downside if the general market direction enters a zone of uncertainty or selling pressure. This could be further exacerbated by the fact that the price was forming a price RSI divergence at the time of writing, which has often been considered a bearish sign.
Source: Sentiment
NEAR’s RSI peaked in mid-January 2023 as the price continued to extend its upward momentum. So it could be heading for some selling pressure ahead.
This post Amid AI’s Upward Trend, NEAR Protocol Reminds Users of ‘One of the Oldest DApps’
was published first on https://ambcrypto.com/amidst-ai-uptrend-near-protocol-reminds-users-of-one-of-the-oldest-dapps/
