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Near Protocol Volume Doubles Post Tiger Global Investment — Is $2 Possible for NEAR?

Last Updated November 3, 2023 12:33 PM
Nikola Lazic
Last Updated November 3, 2023 12:33 PM

Key Takeaways

  • Near Protocol raised $350 million in funding.
  • Price increased by 61% since October 19.
  • A significant breakout occurred but NEAR has more upside potential ahead.

Recently, Near Protocol (NEAR)  experienced a remarkable 61% surge in the cryptocurrency market, leaving investors curious about the driving forces behind this rapid appreciation.

A closer analysis of the underlying factors reveals compelling reasons behind this robust upswing. A significant catalyst was a substantial injection of capital. Near Protocol secured a noteworthy $350 million funding round, spearheaded by the renowned digital investor, Tiger Global.

This infusion of capital not only bolstered the project’s financial standing but also instilled a heightened sense of confidence among investors. The endorsement from a high-profile investor like Tiger Global serves as a strong validation, appealing to both retail and institutional investors alike. Nevertheless, it also introduces potential risks for retail investors, as they may face liquidity challenges if larger players decide to exit their positions.

As institutional interest in the project gains momentum, the question arises: will retail investors follow suit and propel the price to $2 or beyond?

NEAR Price Analysis

The NEAR token has embarked on a noteworthy uptrend, surging from its October 19 low of just under $1, reminiscent of levels seen in December 2020, to reach $1.55 on November 1, representing a substantial 61% rebound.

This impressive rally is underscored by a pivotal breakthrough above the descending resistance line, a formidable barrier that had persisted since the high recorded on August 14, 2022. This breakout holds the promise of potentially heralding a fresh and bullish phase for NEAR.

Breakout seen
First bullish signs

Nonetheless, the Relative Strength Index (RSI) reading of 87% raises a cautionary flag, indicating that NEAR might be edging into overbought territory. This hints at the possibility of a near-term pullback, particularly after encountering resistance at the $1.55 level. The expected decline is likely to take the form of a corrective phase, paving the way for NEAR to establish a higher low.

The formation of this higher low would further fortify the case for an impending bullish phase, suggesting the potential for a robust upward trajectory in the near future for the token.

NEAR Price Prediction

Analyzing NEAR’s wave structure on the 4-hour chart unveils a completed five-wave pattern that originated from the apex of a prior descending triangle. This observation reinforces the argument for the recent uptrend that commenced on October 19.

Another high likely
Higher high expected before a downturn

NEAR’s climb to the $1.55 resistance level has not triggered a sharp pullback but rather a phase of consolidation, signaling the enduring strength of buying pressure. Such consolidation often serves as a bullish indicator, suggesting that the market is not yet ready to reverse the recent upward trend.

Considering the already extended nature of wave 3, the potential upside for wave 5 may be somewhat limited. Nonetheless, a short-term target of $1.85 appears achievable before the anticipated launch of an ABC correction phase, aimed at establishing the first higher low. It is ideal for this higher low to maintain a position above the $1.30 mark, coinciding with the 0.618 Fibonacci retracement level.

Sustaining levels above this pivotal Fibonacci threshold may signify the initiation of a more substantial bullish phase, potentially propelling the price to $2 or beyond.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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