NEAR Protocol (NEAR), a prominent altcoin in the crypto market, has once again caught investors’ eye with a notable price surge.
The price of NEAR (CRYPTO:NEAR), a prominent altcoin in the crypto market, has once again caught investors’ eye with a notable price surge. At the time of writing, the NEAR price was trading at $4.37, showcasing an impressive 19% increase in a short span.
Several factors appear to be contributing to this recent price increase for NEAR crypto.
The recent price performance of NEAR crypto seemed to mirror the broader market’s positive momentum. As the Federal Reserve's (Fed) decision to cut interest rates sparked a wave of optimism, boosting several cryptocurrencies, including NEAR crypto.
Moreover, the NEAR token effortlessly moved past its 20-day and 50-day EMA bands, further bolstering the bullish case for the token.
However, despite these attention-grabbing gains, there are still questions about the rally’s sustainability. Let’s delve deeper into the factors and consider whether they indicate further upward NEAR price movement.
On-chain data suggests promising long-term outlook for NEAR price
On-chain data appeared to be promising for the NEAR price in the long term. According to Near Blocks, the protocol substantially increased daily transactions, total block count, and new addresses.
Recently, NEAR hit a two-week high with 7.717 million transactions, 76.233K total blocks, and 978.337K new addresses, which was a significant jump from two weeks ago.
Before two weeks, the transaction count was 5.238 million, total blocks were 74.966K, and new addresses were 690.887K.
The growing network activity indicated rising demand for NEAR crypto as more users engaged with the platform. The surge in new addresses pointed to increasing interest and adoption, which could support future price gains.
In other news, NEAR is strong in several aspects, including fundamentals, boasting a 2A-tier security grade. As of writing, it ranked 75th in security with a score of 90.96.
Open Interest increasing to push NEAR price higher
In the derivatives market, NEAR crypto experienced notable gains. The Open Interest (OI) for NEAR, which represents the total value of outstanding derivative contracts, climbed to $192.88 Million.
This indicated that more traders were betting on the token’s future price movements. The increase in OI suggested growing optimism among traders about NEAR’s potential for further gains in upcoming sessions.
Moreover, the NEAR funding rates turned positive, hitting 0.0099%, and showcased a strong recovery since September 14th. Positive funding rates indicate traders are willing to pay a premium to maintain long positions. This further supports the bullish outlook for the NEAR price.
Decoding NEAR price action on daily chart
As per NEAR price analysis, several factors fuel the bullish sentiment around the token.
Despite the recent price surge and positive on-chain signals, there are still risks to consider based on the price chart.
Since NEAR’s price surged from the demand zone this September, it has encountered a significant resistance level at $4.401. It has hindered further gains. At the same time, the price has faced resistance from the upper border of a descending wedge pattern around $4.400.
Overcoming these multiple hurdles could validate the recent ascent over the past two weeks, boosting investor confidence. A change of character (ChoCh) will be confirmed if NEAR surpasses these critical levels, potentially skyrocketing long-term investor confidence.
Based on the NEAR price prediction, if it continues its upward trajectory, the next targets are $5.5 and $6.5. However, failure to display a ChoCh could lead to consolidation or a bearish trend.
The views, and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
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