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NEAR Price 12% Off Yearly High — Will Near Foundation AI Developments Provide Needed Boost?

Last Updated May 23, 2024 10:21 AM
Valdrin Tahiri
Last Updated May 23, 2024 10:21 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The Near Foundation announced a new AI-focused incubator and investment wing.
  • The NEAR price broke out from two resistances and is trading 12% below its yearly high.
  • Can NEAR reach a new yearly high, and how long will it increase afterward if it does?

The NEAR price performed admirably in the first three months of 2024, increasing by 140% and reaching a new yearly high of $9 on March 15. However, it corrected afterward and has not reached its previous highs since.

Despite the decrease, NEAR regained its footing in April and is only 12% below its previous highs. Recent developments by the NEAR Foundation, coupled with the strong performance of AI-focused Nvidia stock, could propel the NEAR Protocol price to new heights. If this momentum continues, NEAR could hit a new yearly high and keep climbing.

Near Foundations AI Developments

On May 22, the NEAR Foundation announced that it will commit to invest in AI infrastructure projects based on NEAR. This will be done by establishing the NEAR Artificial Intelligence Research & Development Lab, led by the two founders of NEAR Protocol, Illia Polosukhin and Alexander Skidanov.

In addition to this, the NEAR Foundation launched an AI-focused incubator and investment wing, which will focus on new AI projects. As a result, NEAR aims to become the home of user-owned AI  in web3.

NEAR’s vision extends beyond infrastructure. It plans to build an “AI Developer” for creating end-to-end Web3 applications from user ideas.

NEAR Could Create Double Top

The NEAR price has increased rapidly since October 2023. The upward movement culminated with a new yearly high of $9 in March 2024. The high was made just above the 0.382 Fibonacci retracement resistance level of $8.45.

After a deep correction to $4.28 in April, NEAR started another upward movement and is approaching the yearly high. Since there is no overhead resistance, a breakout above it could catalyze a swift price surge toward the next Fibonacci resistance at $10.76.

NEAR Price Upward Movement
NEAR/USD Weekly Chart | Credit: TradingView

However, the bearish divergence (green) in the weekly RSI is worrisome, especially when combined with the fact that NEAR could be making a double top, considered a bearish pattern.

Even if the NEAR price breaks out, it will not invalidate the bearish divergence in the RSI, since the second high is significantly lower than the first one.

NEAR Price Prediction: Yearly High Incoming?

The daily time frame NEAR price chart gives a bullish outlook, because of the wave count, price action and RSI readings.

The price action shows that NEAR broke out from a short-term descending resistance trend line in April. After validating it as support (green icon), the price reclaimed the $7.65 resistance area. This movement confirms that NEAR has started its increase.

The daily RSI aligns with this outlook, since it has crossed the 50 threshold.

NEAR Wave Count
NEAR/USDT Daily Chart | Credit: TradingView

Finally, the wave count suggests NEAR is in the fifth and final wave of its increase (white), which started in October 2023. If the count is correct, the likely target for the top of the increase is between $11.88 and $12.36.

The 1.61 external Fibonacci retracement of wave four (black) provides the lower limit of the target. The upper limit is found by giving wave five the same length as waves one and three combined.

The target would be above the long-term 0.5 Fibonacci retracement resistance from the previous section. But, it would coincide with the 0.618 level. Since wave five often ends with a bearish divergence, the prediction aligns with the weekly RSI reading.

Near Protocol Total Value Locked
NEAR TVL | Credit: DeFiLlama

The price increase is supported by the increase in Total Value Locked (TVL). In fact, the latter is outpacing the NEAR price, since it has already reached a new yearly high. In any case, the TVL of $360 million is more than halfway to its all-time high of $480 million. The readings are in line with the ongoing NEAR price increase.

NEAR to a New Yearly High and Beyond

The NEAR price is likely to reach a new yearly high. The new NEAR Foundation AI developments could give it a boost. While the long-term chart gives a mixed outlook, the daily one suggests the price is in the midst of an increase toward new highs. Because of the long-term bearish divergences, a significant correction could happen once the current upward movement is over.

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