NEAR Protocol (NEAR) Price Surges on AI Hype, Aiming for $7
In a positive turn of events, NEAR Protocol (NEAR) is defying market trends and experiencing notable price increases, fueled by the hype surrounding artificial intelligence (AI) technology. AI-themed cryptocurrencies have historically responded positively to advancements in the AI industry, and NEAR is no exception.
One key development driving NEAR’s recent surge is the announcement by Panthera Capital, a crypto hedge fund, that it is raising an impressive $1 billion, with a significant portion of the capital expected to be invested in AI-related blockchains. NEAR Protocol, which combines AI and blockchain technology to scale decentralized applications, is likely benefitting from this news.
Furthermore, NEAR’s price increase can also be attributed to a recent milestone by Nvidia, a leading company in AI computing. Nvidia surpassed Microsoft to become the world’s most valuable company after its market capitalization reached a staggering $3.33 trillion. This achievement has further boosted confidence in AI-related technologies and cryptocurrencies like NEAR.
In addition to these external factors, on-chain data from Santiment reveals an improvement in development activity on the NEAR Protocol. This increase in development activity indicates ongoing enhancements and optimizations within the network, which bodes well for the token’s value.
NEAR’s trading volume has also seen an uptick, indicating growing interest and engagement in the cryptocurrency. Rising volume typically strengthens a price trend, and if this trend continues alongside the price increase, NEAR might reach $6 in the near future.
Technical analysis using the Money Flow Index (MFI) and On Balance Volume (OBV) suggests that buying pressure for NEAR is on the rise. The MFI, which measures the flow of money in and out of a cryptocurrency, and the OBV, which measures positive and negative volume flow, both indicate a bullish sentiment for NEAR.
Looking at Fibonacci Retracement levels, the daily chart suggests that if buying pressure continues to increase, NEAR’s price may reach $5.70, as indicated by the 61.8% Fibonacci level. In an exceptionally bullish scenario, the price could even move up to $6.15 at the 78.6% Fibonacci level.
However, it’s essential to note that the bullish thesis could be invalidated if NEAR holders start selling off their positions, or if development activity declines. In such cases, the price may fall to $5.06.
Overall, NEAR Protocol’s recent price surge is driven by the excitement surrounding AI technology and the positive developments in the sector. With continued upward momentum, NEAR has the potential to reach $7 in the near future.