NEAR Protocol’s daily active addresses hit 3M – Bullish sign?

NEAR

As an analyst with over two decades of experience in the financial markets, I have seen bull and bear cycles come and go, but the growth trajectory of AI-related cryptocurrencies like NEAR Protocol [NEAR] is truly remarkable. The 25% gain in just the last 30 days, coupled with the surge in daily active addresses to 3 million, paints a picture of a network that is gaining traction quickly.

AI-based cryptocurrencies, particularly ones like Bittensor [TAO], have seen remarkable expansion and often surpass their overall crypto market counterparts in performance.

Besides TAO, the other AI-related crypto that has seen significant growth is NEAR Protocol [NEAR].

Over the past month, NEAR has experienced a 25% increase in value. This surge can be attributed to the expansion of the network, increased usage, and heightened interest.

In Q3 of 2024, the NEAR Protocol had approximately 3 million daily active addresses according to CryptoRank, making it the leading network in terms of this specific statistic.

To put it another way, when looking at this specific measurement, Solana (SOL) and Tron (TRX) had approximately 2.4 million and 2.1 million active addresses per day, respectively, over the past three months.

The increase in this area occurred simultaneously with the expansion of the AI cryptocurrency market. As per a recent study by DappRadar, there was a notable surge of 71% in the number of AI-centered decentralized applications (dApps) from Q2 to Q3.

Moreover, Artificial Intelligence decentralized applications (AI dApps) are showing a significant increase in popularity, with approximately 4.3 million distinct active wallets being used each day, signifying the expansion of the sector.

In the expanding realm of AI cryptocurrencies, I find myself pondering whether NEAR will exhibit a bullish trend or if its price will be influenced by the prevailing market sentiment.

NEAR price analysis

At the moment of reporting, NEAR was priced at $4.87, having decreased by 2.36% over the past 24 hours. Moreover, trading activity on this coin has noticeably reduced, with CoinMarketCap indicating a drop in volumes exceeding 30%. This suggests that market involvement is relatively low.

Over the past few days this month, NEAR‘s trend has leaned more towards bearish, according to the Moving Average Convergence Divergence (MACD) signal.

In simpler terms, the Moving Average Convergence Divergence (MACD) line is moving lower than the signal line, suggesting a downward trend or a bear market condition. Additionally, the MACD bars displayed in red show this declining trend as well.

Buyers are also inactive, with the Relative Strength Index (RSI) at 51 showing a neutral market sentiment. However, the RSI line below the signal line shows that the momentum is bearish.

Should the bears maintain their dominance, it’s plausible that the price could fall to retest the support at the 0.236 Fibonacci level, which is approximately $4.761.

If investors decide to purchase, it’s expected that NEAR may surge towards the upcoming resistance level at around $5.31. Once this level is breached, the price might continue upward, potentially reaching values beyond $6.

Read NEAR Protocol’s [NEAR] Price Prediction 2024–2025

Although technical signals suggest a downward trend, the balance between buyers and sellers on Binance indicates that traders anticipate an upturn in market conditions.

As per Coinglass’s data, approximately 71% of the accounts on Binance opted for buying (long positions), whereas only around 28% chose to sell (short accounts).

2024-10-10 06:16

NEAR price analysis

Read More