NEAR’s security update had this impact on investor confidence

Solana recently made the news after addressing this week’s hack by highlighting the need to improve the security of wallet addresses. The NEAR protocol took immediate notice and took steps to improve security for all her NEAR wallet users.

In fact, NEAR recently revealed that it conducted a security review of the wallet earlier this week. This includes searching for potential vulnerabilities that may affect your users. The security update in question identified a vulnerability related to wallets whose SMS or email recovery data was processed by a third party.

The protocol is keen to migrate away from SMS and email recovery methods to enhance wallet security. New addresses no longer use this method and NEAR recommends that existing users change their security settings.

The NEAR protocol’s decision to focus on security and protection of user addresses may have boosted investor confidence. In fact, NEAR saw his August 5th rise of 17.5% within hours after the security update was released.

Source: Trading View

NEAR’s short-term price action is capped by rising resistance lines. On August 5, the price surge brought a retest of the resistance line and even managed to cross it before facing friction. Since then, prices have already rebounded slightly.

NEAR’s current retracement is also not surprising.

Big splash of whales

Friday’s strong bull run in cryptocurrencies was fueled by a large increase in market capitalization. The latter increased him by more than $500 million during the same trading session.

If such a large amount of money does not move around quickly, this explains why the recent decline has not been so pronounced.

Source: Santimento

At press time, the market capitalization remained strong at over $3.8 billion. Massive inflows supported the resistance breakout, but may also support higher price levels. However, volume metrics may suggest otherwise.

Why a Stronger Rise is Coming

Friday’s price surge and significant inflow in market capitalization was fueled by the second-largest volume surge in four weeks. The last time Volume recorded such a spike was on July 19th and he on the 20th.

A slight retracement ensued followed by another bull move that pushed the price higher. NEAR’s weighted sentiment metric could also support another bullish outcome.

Source: Santimento

Interestingly, the weighted sentiment press time reading was -2.29, the lowest level in the last four months. This suggests that prices may rise further. Only time will tell if this is indeed the case. NEAR’s security update had this impact on investor confidence

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