Near price braces for more sell-off despite the Cosmose AI deal
Near price continued falling on Monday even after inking a major partnership with Cosmose AI, a fast-growing company valued at over $500 million. The Near coin has dropped in the past six straight days and is hovering near the highest level in March this year.
Near Protocol partners with Cosmose AICopy link to section
The biggest cryptocurrency news on Monday was that Cosmose AI had decided to embrace Near’s technology. In a statement, the Singapore-based company, announced that it will use Near Protocol’s technology to power its technology.
The statement added that Near Foundation had made a strategic investment in the company. It took part in a funding round that valued the company at about $500 million, making it one of the best-performing Singapore-based fintech companies.
Cosmose AI is a company that runs the KaiKai application, which makes it possible for customers to discover nearby products. Users can then use the application to pay for the product. Before its partnership with Near, KaiKai has been using Stripe, the popular payment technology company.
By embracing Near Protocol, the company hopes to reduce transaction costs, which tends to cost retailers millions of dollars every year. It selected Near because of its lower transaction costs and higher speeds compared to other networks like Ethereum and Solana.
Near Protocol will also help the company migrate its data to the blockchain. It will let customers store data on their phones using edge computing. This is a major deal for Near Protocol since Cosmose AI has over 20 million customers.
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Near Protocol, once seen as a rival to Ethereum, is working to redeem itself because of its close relationship with FTX and Alameda Research. In April last year, FTX joined other companies like Tiger Global in extending $350 million to Near Protocol. Near now has just $80 million in DeFi total value locked.
Near price predictionCopy link to section
Near Protocol price has been in a strong downward trend in the past few weeks. In this period, the coin has moved below the 25-day and 50-day exponential moving averages. Its attempt to recover faced a strong resistance at $2.40, the highest point on April 18.
Therefore, the coin will likely continue falling as sellers target the next key support at $1.6930, the lowest level in March. This price is ~11% below the current level. A move above the 50-day moving average at $2.08 will invalidate the bearish view.