The realm of Artificial Intelligence (AI) cryptocurrencies has experienced remarkable expansion, with many of them, like Bittensor [TAO], showing superior performance compared to the broader cryptocurrency market.
In addition to TAO, another AI-related cryptocurrency that has displayed substantial growth is NEAR Protocol [NEAR].
Over the past month, NEAR has surged by 25%, fueled by the expansion of its network, increasing usage, and growing interest.
By the third quarter of 2024, the daily active addresses on the NEAR Protocol hit 3 million, as reported by CryptoRank, positioning it as the leading network by this measure.
In contrast, the networks ranked second and third in terms of daily active addresses, Solana [SOL] and Tron [TRX], recorded 2.4 million and 2.1 million addresses, respectively, during the same period.
This ascent aligned with the progression of the AI crypto sector. As per a recent DappRadar report, AI-related decentralized applications (dApps) witnessed a 71% growth in Q3 compared to the previous quarter.
Moreover, AI dApps have reported an average of 4.3 million daily unique active wallets, underscoring the industry’s growth trajectory.
As the AI crypto sector continues its expansion, the question arises: Will NEAR embark on an optimistic trajectory, or will market sentiments dictate its price course?
NEAR Price Analysis
At the time of writing, NEAR was trading at $4.87 following a 2.36% decline over 24 hours. Trading volumes also exhibited a more than 30% decrease, as per CoinMarketCap data, indicating subdued market involvement.
NEAR has witnessed a bearish trend since the month’s commencement, evident from the Moving Average Convergence Divergence (MACD) indicator.
The MACD line remains below the signal line, signaling a bearish trend, and this downtrend is further highlighted by the red MACD histogram bars.
Buyers have shown limited activity, with the Relative Strength Index (RSI) at 51, indicating a neutral market sentiment. Nonetheless, the RSI line beneath the signal line suggests a bearish momentum.
If bearish sentiments persist, the price could potentially test the support level at the 0.236 Fibonacci level ($4.761).
In contrast, a surge in buyer activity could propel NEAR towards the next resistance level at $5.31, with further targets possibly exceeding $6.
While current technical readings lean towards a bearish tone, the long/short ratio on Binance portrays traders’ optimism for an upward recovery.
Based on Coinglass data, 71% of Binance accounts had initiated long positions, whereas only 28% were involved in short positions.