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Solana has been in the news recently after addressing this week’s hack highlighting the need to improve the security of wallet addresses. The NEAR protocol immediately took notice and has now taken steps to improve security for all NEAR wallet users.
In fact, NEAR recently revealed that it conducted a security audit of the wallets earlier this week. This includes looking for potential vulnerabilities that may affect users. The security update in question confirmed a vulnerability involving wallets whose SMS or email recovery data was managed by a third party.
On 6/6/2022 a wallet error was reported. There was a potential vulnerability in the security of wallets that used email or SMS recovery as data was transmitted to the third-party service. The bug was fixed the same day and no accounts were compromised.
— NEAR protocol | NEARCON.org | Lisbon | September 11-14 (@NEARProtocol) August 4, 2022
The protocol wants to move away from the SMS and email recovery method in an effort to boost wallet security. New addresses will no longer use this method and NEAR has encouraged existing users to 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 surged 17.5% on August 5, within hours of the security update’s release.
Source: TradingView
NEAR’s short-term price action has been capped by an upward resistance line. On August 5, the price rally led to a retest of the resistance line and even managed to break above it before encountering some friction. The price has already fallen slightly since then.
The current retracement of the NEAR is also not surprising given that the rally briefly pushed the price into the overbought zone.
A big whale splash
The cryptocurrency’s strong rally on Friday was supported by a strong increase in its market capitalization. The latter rose by more than $500 million during the same session.
When such large quantities do not move quickly, this would explain why the latest pullback was not as sharp.
Source: Santiment
Market capitalization at press time held strong above $3.8 billion. While large inflows supported the break of resistance, they may also support higher price levels. However, the volume measurement may suggest otherwise.
Because a stronger upside may be around the corner
Friday’s price rally and large market capital inflows were supported by the second-biggest rise in volume in four weeks. The last time the volume recorded such a rise was on July 19 and 20.
A slight reversal followed, followed by another up move that pushed the price higher. NEAR’s weighted sentiment metric may also be in favor of another bullish outcome.
Source: Santiment
Interestingly, the weighted sentiment press time indicator of -2.29 was its lowest level in the last four months. This suggests that the price may be due for more upside. Only time will tell if this is indeed the case.
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