Near Protocol’s Price Target Set at $2.74 Following Technical Breakout
Near Protocol (NEAR) is poised for a potential price increase to $2.74 after demonstrating a breakout from an inverse head-and-shoulders (H&S) pattern. This positive momentum is further underscored by the recent launch of the Bitwise NEAR staking Exchange Traded Product (ETP) on Deutsche Börse Xetra, which reflects growing institutional interest in AI-focused tokens. The ETP aims to stake its NEAR holdings, with a goal of achieving around 5.5% in net returns after deducting fees.
Positive Market Sentiment Fuels NEAR’s Price Surge
As of Thursday, Near Protocol has shown promising indicators, with its price climbing to $2.26. This rise is attributed to renewed investor enthusiasm, particularly following the introduction of the NEAR staking ETP by Bitwise Europe. The derivatives market is also displaying signs of increased activity, highlighted by a 7% rise in Open Interest to approximately $237 million and a 61% spike in trading volume, reaching around $649 million. In the last 24 hours, liquidations amounted to $628,000, primarily from short positions totaling roughly $490,000 and long positions close to $137,000.
Bitwise NEAR ETP Launches on Deutsche Börse Xetra
On Wednesday, Bitwise Europe announced the debut of the NEAR staking ETP on Deutsche Börse Xetra, a prominent electronic exchange in Germany. This product provides regulated access to one of the leading blockchain platforms in the AI landscape. Trading under the ticker NEAR, the ETP is part of Bitwise’s strategic initiatives in Europe that are linked to index-staking. The firm has designed the ETP to stake its NEAR holdings, aiming for around 5.5% in additional returns after accounting for staking fees, with a significant portion of the NEAR set aside for liquidity on regulated exchanges. Illia Polosukhin, co-founder of the Near Foundation, stated, “NEAR was built to power a new kind of internet—one where AI serves people, not platforms. This ETP brings that vision closer to investors worldwide.”
Advancements in AI-Focused Blockchain Infrastructure
Near Protocol is steadily enhancing its blockchain infrastructure to support user-centric AI systems, enabling transactions between AI and humans. Currently, NEAR stands as the second-largest AI token, with a market capitalization of $2.8 billion, closely trailing behind Bittensor (TAO), which has a valuation of $2.9 billion.
Technical Analysis: NEAR’s Bullish Momentum and Price Projections
NEAR’s price is currently above two significant levels: the 100-day Exponential Moving Average (EMA) at $2.17 and the 50-day EMA at $2.15. This bullish trend follows the formation of an inverse head and shoulders pattern, as illustrated on the daily chart, which saw a technical breakout above the neckline resistance near $2.23. The price reached intraday highs of $2.36 before pulling back to nearly retest the neckline, which has now become a support level at $2.23. The Moving Average Convergence Divergence (MACD) indicator, which has maintained a buy signal since Wednesday, suggests that the path of least resistance may remain upward. As long as the blue MACD line stays above the red signal line, traders may be inclined to increase their positions, contributing to the bullish momentum.
Potential Price Target and Market Dynamics
The inverse head and shoulders pattern indicates a potential breakout target of $2.74, calculated based on the pattern’s height extrapolated from the breakout point. However, traders might need to moderate their bullish outlook if the 200-day EMA resistance at $2.26 limits further gains. Should profit-taking create upward pressure, market participants may seek support at the 100-day EMA around $2.23 and the 50-day EMA at $2.17.
