Artificial Intelligence (AI) cryptocurrencies have emerged as a significant trend in the broader crypto landscape, with notable performers like Bittensor (TAO) leading the charge. NEAR Protocol (NEAR) has also captured attention with its remarkable performance, gaining 25% over the last 30 days, largely fueled by increasing network activity and interest in AI-related projects.
Recent data indicates that NEAR Protocol has seen impressive growth, particularly in daily active addresses, which reached 3 million in Q3 2024 according to CryptoRank. This places NEAR at the forefront of blockchain networks, outpacing competitors like Solana (SOL) and Tron (TRX), which reported 2.4 million and 2.1 million daily active addresses, respectively.
The surge in NEAR's usage aligns with a broader trend within the AI crypto sector. DappRadar's latest report highlighted a 71% increase in AI-related decentralized applications (dApps) in Q3 compared to the previous quarter, underscoring the burgeoning interest in this niche. AI dApps collectively recorded an impressive average of 4.3 million daily unique active wallets, suggesting that both the technology and its applications are gaining traction.
As of the latest market update, NEAR is trading at $4.87, reflecting a 2.36% drop in the past 24 hours. Trading volumes have also decreased by over 30%, indicating a potential decline in market participation. This bearish sentiment is corroborated by technical indicators such as the Moving Average Convergence Divergence (MACD), which shows the MACD line trending below the signal line and a series of red histogram bars, pointing to a continued downtrend.
The Relative Strength Index (RSI) sits at 51, suggesting neutral market sentiment, but the RSI line trailing below the signal line signals bearish momentum. If the downward trend persists, NEAR may test its support level around the 0.236 Fibonacci level at $4.761.Conversely, if buyers enter the market, NEAR could aim for the resistance level at $5.31, with further aspirations above the $6 mark.
Despite the current bearish outlook indicated by technical analyses, sentiment among traders appears optimistic. The long/short ratio on Binance reveals that 71% of accounts are positioned for a price recovery, while only 28% are shorting NEAR. This divergence suggests that many traders believe in the potential for NEAR to rebound, despite recent market fluctuations.
As the AI cryptocurrency sector continues to evolve, the future for NEAR Protocol remains intriguing. While technical indicators currently reflect bearish momentum, the significant growth in network activity and trader positioning suggests that NEAR could still form a bullish leg. The coming weeks will be crucial in determining whether NEAR can leverage its strong fundamentals and the overall growth of the AI sector to rise above market sentiment challenges. Investors and traders alike will be watching closely as this narrative unfolds.
October 2024, Cryptoniteuae