NEAR may develop its own stablecoin to compete with Terra’s UST in the near future. Speculation over the announcement looks to be pushing NEAR closer to a crucial resistance level, which, if broken, could drive the token into price discovery mode.
NEXT EDGES GETTING CLOSE TO BREAKOUT
NEAR appears to be building traction for a strong bullish impulse as the network’s utility may be able to expand.
Among cryptocurrency fans, there is growing speculation about the development of an NEAR-native stablecoin. The stablecoin, dubbed USN, is claimed to follow a similar procedure to Terra’s UST, in which NEAR tokens are burned when users want to mint the stablecoin to enhance its demand. According to Crypto Insiders founder Zoran Kole, USN might also offer an annual interest rate of around 20%.
The recent launch of the USN stablecoin on the NEAR public test network has sparked interest among market participants.
Although there have been no official updates on the launch date of USN, it appears that NEAR may spike in anticipation of the news. Since early April, the cryptocurrency has been consolidating within a symmetrical triangle on its four-hour chart. The likelihood of a bullish breakout grows as prices approach the pattern’s pinnacle. By breaking past the $17 resistance level, the price might rise 32.5 percent to a new all-time high of $22.4.
It is worth mentioning that the asset must avoid closing below $15, as this would invalidate the bullish forecast. Breaking through this critical support level may prompt traders to withdraw their positions, placing negative pressure on the coin. Prices might decrease to $14 or even $12.50 in such conditions.