Cryptocurrency analysts are abuzz with conversation surrounding the NEAR Protocol (NEAR) as the token rises rapidly in value. Over the past month, the price of NEAR has surged by a whopping 130%.
Will it reach almost $8?
This surge, which translates to an impressive price of $7.91 per token as of this writing, has not gone unnoticed and has sparked a storm of interest and speculation within the investment community. But is this a real upswing or simply a fad?
Source: CoinMarketCap
Are you breaking a downward trend or chasing a trend?
While some analysts, such as prominent Rekt Capital, see this surge as a possible reversal of a multi-year downward trend, others urge caution. After all, the cryptocurrency market is notorious for rapid fluctuations. The price of a token can rise to dizzying heights and then plummet just as quickly.
Finally, Near Protocol revisited its multi-year Macro Downtrend.
now #near We will try to break this to further strengthen the current bullish momentum.
A break from this macro downtrend could see the price revisit its previous all-time high resistance area.
#BTC #NEARprotocol… https://t.co/VmcLjkWFPn pic.twitter.com/wboVljOJsc
— Rekt Capital (@rektcapital) March 11, 2024
Forecast: Bullish with a cautious side.
Analysts have predicted a bullish trend for NEAR in the near future. Their forecast predicts a 10% increase, bringing the price to around $7.48 by March 13, 2024.
This expected increase comes with a market capitalization of $7.65 billion and notable 24-hour trading volume of $2.2 billion. But as some experts point out, forecasts should be viewed with a critical eye. Markets are made up of complex intertwined factors, and even the most carefully crafted predictions can easily fall apart when unexpected events occur.
Bitcoin is now trading at $73.319. Chart: TradingView
Technical Indicators, Market Sentiment
Technical indicators provide valuable insight, but they should not be the sole basis for investment decisions. Currently sitting at NEAR’s “extreme greed” 82, the Fear and Greed Index paints a picture of a market potentially fueled by euphoria rather than sound judgment.
With NEAR already surging 8.06% in the last 24 hours, investors basing their bets solely on this sentiment may be disappointed if a correction occurs.
Beyond the Hype: Investigating NEAR’s Potential
However, it would be unwise to completely ignore NEAR’s potential. To understand this we need to examine it thoroughly. The NEAR Protocol is a blockchain platform designed to solve the scalability issues that have plagued existing blockchain technologies such as Ethereum.
NEAR boasts features like sharding, a method of distributing processing power across a computer network to facilitate faster transaction speeds and lower fees.
This focus on scalability has attracted the attention of developers looking to build decentralized applications (dApps) on platforms that can handle large amounts of traffic. Several promising dApps are already being built on top of NEAR, including a decentralized finance (DeFi) protocol and a non-fungible token (NFT) marketplace.
A thriving dApp ecosystem could be a key driver of NEAR’s long-term growth. Cryptocurrency experts took insight from the price movements observed in early 2023 and formulated the average NEAR exchange rate for March 2024 as $10.06.
Although this average is a benchmark, fluctuations within the market suggest potential fluctuations, with a minimum expected price of approximately $9.8 and a maximum expected price of $10.2. Considering these predictions, investors may be attracted by the potential return on investment (ROI) of 35%, which indicates promising growth prospects for Near Protocol in the coming months.
Featured image from Pexels, chart from TradingView
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