As the AI narrative reaches peak excitement ahead of the Nvidia AI conference 2024 (GTC 2024), promising layer-1 Near Protocol is experiencing a significant rally. This article will offer an analysis of NEAR’s current price trends and how it presents a more enticing investment opportunity at this time. However, retracement against the established trend is predicted.
NEAR sentiment remains keenly bullish in the crypto community, with trader’s forecasts of a potential $8 target coming to fruition earlier this afternoon.
NEAR Protocol Hits New Local High, Could Double-Digits Be Next?
Presently in minor localized retracement, NEAR Protocol is presently trading at a market price of $8.15 (representing a 24-hour change of -2.8%). This comes as the price surged +70% out of consolidation at lower support above $5.15 on March 12, in a 48-hour surge that extended into this morning’s ascent. Minor retracement has since kicked in as price action adjusts from the new local high at $8.54, with recently breached resistance at the $8 mark failing to convert to support. NEAR price now faces potential further retracement down to lower support at $6.5 if price is unable to establish above $7.32.
Even more concerning, increasing divergence above the 20 DMA (which remains down at $5) adds to the risk of a retracement, with critical support from this essential moving average not tested for over a week.
Retracement sentiment is also echoed in NEAR’s key indicators, with the RSI remaining significantly over-heated for 8-days now – aligning with the breakout from the 20 DMA.
The momentum behind the token
However, the MACD presents a contrasting view at 0.323; reflecting the substantial momentum behind NEAR price action amidst AI narrative hype. All in all, NEAR price forecast suggests that this could mark the tail-end of this week’s rally, with retracement probable on the short-time frame. To the upside, NEAR price is eyeing support above $8 (a potential +3.69%). While downside risk could witness NEAR price decline to lower support at $7.32 (a possible -6.3%).
Thus, NEAR price forecast reveals a short-time frame risk: reward ratio of 0.59 – indicating that retracement risk outweighs potential entry opportunities at present. Nevertheless, while Near Protocol might appear unappealing to investors, an emerging eco-friendly alternative to Bitcoin is gaining momentum.
What is NEAR Protocol
NEAR Protocol is a secure, scalable, and performant Layer 1 network that provides an optimal environment for decentralized applications and offers unique, practical solutions for both developers and users. The protocol operates on the Proof-of-Stake (PoS) consensus algorithm and employs smart contracts with cross-chain functionalities. The NEAR token is utilized for paying fees and staking by validators or holders who have delegated their assets to them. Coin holders can also participate in voting related to products and the operation of the ecosystem.
