Near Protocol (NEAR) has begun a new bull cycle after reaching its all-time high. The completion of the cycle and the reset come at a time when the protocol is strengthening its network against post-quantum threats. An analyst expects NEAR to reach prices between $4 and $5.
NEAR loses 95% of value after completing cycle
NEAR has begun a new market cycle after completing its previous cycle, during which it reached an all-time high. The token has lost nearly 95% of its value from the time it reached its all-time high. It’s been four years since the NEAR reached its all-time high, when the market transitioned from aggressive buying into complete seller dominance.
Now that the market has gotten rid of the weak hands and the excess leverage, NEAR tokens have gone into the hands of long-term investors who are patient. According to analyst Logic, when the market shakes off weak hands and resets, it’s not a sign of the end of the trend, but it’s the perfect condition for the start of a new rally.
Near protocol makes three important upgrades
In addition to this, the protocol is also strengthening its guard against post-quantum threats with three major upgrades. Post-quantum signing, dynamic resharding, and separation of consensus and execution (SPICE).
Post-quantum signing is a method of digitally signing transactions or data using cryptographic algorithms designed to withstand attacks from future quantum computers. Unlike the current signature, it relies on quantum-resistant mathematics. Near’s goal is to ensure digital signatures remain secure even when large-scale quantum computers become practical.
The second upgrade: Dynamic resharding is the process of automatically splitting or merging a blockchain’s shards based on network demand. As transaction activity increases, the network creates more shards to handle the load, and when activity falls, it consolidates shards to improve efficiency. This allows the blockchain to scale without requiring manual intervention.
Separation of Consensus and Execution (SPICE) is a blockchain architecture that separates the process of validating transactions (consensus) from processing them (execution). This allows specialized nodes to perform each task independently, improving scalability, throughput, and network efficiency while maintaining security.
NEAR loses 50-day moving average despite proposed improvements
Despite the team announcing these upgrades, the prices are still not doing good. For instance, the chart below shows that NEAR has lost the 50-day moving average, which is an important support level on the weekly chart.
Will NEAR reach $5?
Although NEAR has lost the support level, the relative strength index, which measures the strength of the trend, shows that NEAR still has momentum.
According to analyst Michael van de Poppe, the MACD line has been bullish on higher time frames, and as such, there is a high chance NEAR could reach values above $4-$5.
