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- The NEAR price surged 19% on the news of the Fed rate cut.
- On-chain data shows increasing network activity and growing demand for NEAR.
- Derivatives market indicators suggest bullish sentiment for NEAR.
NEAR Protocol (NEAR), a prominent altcoin in the crypto market, has once again caught investors’ eye with a notable price surge. The NEAR price was currently trading at $4.37, marking an impressive 19% increase in a short span.
The Fed’s (Federal Reserve) decision to cut interest rates has sparked a wave of optimism, boosting several cryptocurrencies, including NEAR crypto. This recent price performance appeared to mirror the broader market’s positive momentum. It happened as the NEAR has effortlessly moved past its 20-day and 50-day EMA bands.
While these gains are certainly attention-grabbing, there are still questions about the rally’s sustainability. Let’s delve deeper into the factors driving the NEAR price increase and consider whether this indicates further upward momentum.
What does the on-chain data say about the NEAR price?
On-chain data suggested a promising long-term outlook for the NEAR price. According to Near Blocks, the protocol has substantially increased daily transactions, total block count, and new addresses.
It recently hit a two-week high with 7.717 million transactions, 76.233K total blocks, and 978.337K new addresses. This was a significant jump from two weeks ago.
Likewise, before two weeks, the transaction count was 5.238 million. The total blocks were 74.966K, and the new addresses were 690.887K.
The growing network activity indicated rising demand for NEAR crypto as more users engage with the platform. The surge in new addresses points to increasing interest and adoption, which could support future price gains.
Additionally, 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 has experienced notable gains. The Open Interest (OI) for NEAR, which represents the total value of outstanding derivative contracts, has climbed to $192.88 Million. This indicated that more traders are 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. Over the past 24 hours, the derivatives volume has reached $258.68 Million. This reflected the rising demand for NEAR in the derivatives market.
Moreover, NEAR’s funding rates have turned positive, hitting 0.0099%, marking 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.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
