Introduction
Recently, NEAR Protocol experienced one of the largest price increases in its history, jumping approximately 30% between Thursday evening and Friday afternoon, following positive comments about upcoming network upgrades and increased buying interest from institutions.
NEAR reached a price point of approximately $2.26, establishing it as one of the most active altcoins in all of crypto. Even with a broad market decline, decreasing Bitcoin prices from the $82,000 range and dropping to $77,000 in the same week, NEAR Protocol has seen a strong bullish sentiment due to an increase in trading volume, a robust futures market, and excitement for A.I.-integrated blockchains.
NEAR Protocol Price Explodes 30% Amid Massive Trading Volume
NEAR Protocol has experienced a strong bullish sentiment and has seen a dramatic increase in both retail and institutional trading. NEAR Protocol has experienced approximately a 45% increase in price over the past week, and is experiencing strong bullish sentiment and expectation for the future.
The demand for trading NEAR increased, resulting in prices surging, and NEAR experienced over $1 billion in trading volume for a 24-hour period. In the midst of a relatively slow period for trading in the rest of the crypto market, NEAR Protocol was able to outperform many of its competing altcoins.
NEAR Bitwise Staking ETP Boosts Interest
Investor excitement was pure momentum that stemmed from in investments in the Bitwise NEAR Staking ETP, designed to give access to NEAR Protocol while offering a reward for staking.
Investors purchase regulated products to gain exposure to digital assets and are Artus to spend NEAR. The Bitwise NEAR Staking ETP was specially designed to accommodate professional staking.
Investors can earn staking rewards during their investments and gain exposure to NEAR’s blockchain.
Changes to Network Build comparatively Greater Confidence to the Market
The upcoming upgrades to NEAR’s Protocol regarding a dynamic resharding is by far the biggest cause of excitement, and for good reason.
Dynamic resharding will help increase performance and speed of NEAR’s Protocol.
Many people believe NEAR could become the go to Protocol for building a scalable blockchain by combining these developments.
The NEAR team also posted a potential roadmap describing new security and privacy features, as well as new signing technology to protect future threats of quantum computing.
Overlay Trading Boosts Activity
Trading in NEAR derivatives also supported the bullish sentiment.
Futures trading volumes increased by 269% with a total value of $2.35 billion due to increased speculation in the market.
Open interest also increased by 63.28% and currently stands at $630 million. Increased open interest typically shows that there is new money entering the market and new positions are being set.
Increased trading volume in futures shows confidence but could lead to increased volatility if momentum slows and a larger number of trades are executed to take profits.
NEAR Price Prediction: Can Bulls Push Toward $3?
Technical analysis shows that NEAR is in a strong bull trend. The Relative Strength Index (RSI) is 88.04, meaning NEAR is currently overbought and the Chaikin Money Flow (CMF) is 0.22, meaning there is a significant amount of capital inflow.
Analysts are looking at $2.50 as the next resistance level. If there is a breakout above this threshold, NEAR could reach a major resistance level of $3.00.
The new support level is $2.10. If there is a market pullback, NEAR could reach a major support level of $1.90, where it is likely that new buyers would enter the market.
