Near protocol technical analyse

Answered at Oct 11, 2024

NEAR Protocol, a smart contract blockchain, has been gaining attention for its innovative approach to scalability and usability. This report delves into the technical analysis of NEAR Protocol, examining its price trends, market dynamics, and future projections.

Overview of NEAR Protocol

NEAR Protocol is designed to compete with Ethereum by offering a cheaper and faster alternative for decentralized applications (dApps). It utilizes a unique consensus mechanism called Doomslug and a sharding technology known as Nightshade to enhance scalability without compromising performance or cost (CoinDesk).

Current Market Performance

As of October 11, 2024, NEAR Protocol is trading at $4.78, with a 24-hour trading volume of $325.40 million. The market capitalization stands at $5.29 billion, supported by a circulating supply of 1.11 billion NEAR tokens. The price has seen a 5.32% increase over the last 24 hours (CoinDesk).

Historical Price Trends

  • All-Time High: NEAR reached its peak price of $20.42 in January 2022, following a significant surge in 2021.
  • Subsequent Decline: The price halved shortly after its all-time high but remained above the $1-$2 range seen at the end of 2020 (CoinDesk).

Technical Analysis

Moving Averages and Indicators

The technical analysis of NEAR Protocol involves examining moving averages and other indicators to predict future price movements. The current recommendation is to sell, with the price expected to range between $4.51 and $4.61 over the next 24 hours (3Commas).

Price Predictions

  • October 2024: NEAR is predicted to start the month at $5.281 and end at $4.840, with a maximum forecasted price of $5.413 and a minimum of $3.681 (CryptoPredictions).
  • November 2024: The price is expected to begin at $4.792 and finish at $3.987, with a maximum of $5.416 and a minimum of $3.683 (CryptoPredictions).

Long-Term Forecast

2025-2028 Projections

  • 2025: NEAR is forecasted to average $4.307 in January.
  • 2026: The average price is expected to be $3.872.
  • 2027: Predictions suggest a potential increase to $6.412.
  • 2028: The average price could reach $8.170 (CryptoPredictions).

2029 and Beyond

  • 2029: The price is projected to start at $3.9659379, with a maximum of $4.4295963 and a minimum of $3.8891329. The average for the year is expected to be $4.1593646 (3Commas).

Market Dynamics and Future Prospects

NEAR Protocol's inflationary issuance schedule, which increases the supply by about 5% annually, plays a crucial role in its market dynamics. The protocol burns 70% of transaction fees, potentially making NEAR deflationary if daily transactions exceed 1.5 billion (CoinDesk).

Strategic Collaborations

NEAR's collaboration with RSS3 aims to build a high-performance environment for AI dApp builders, reducing reliance on centralized AI products and fostering a Web3 AI ecosystem (CoinDesk).

Conclusion

NEAR Protocol's innovative technology and strategic partnerships position it as a formidable player in the blockchain space. While current technical indicators suggest a cautious approach, the long-term outlook remains optimistic, driven by its scalability solutions and potential for deflationary economics. Investors should consider these factors alongside market trends and expert predictions when evaluating NEAR Protocol's future potential.