Near Protocol’s (NEAR) 46% Rally: Here’s What’s Truly Behind It
U.Today – Over recent weeks, the cryptocurrency market has witnessed a remarkable surge in the value of (NEAR), which reported a whopping 46% rally. While such price movements often leave investors perplexed, a deeper dive into the underlying factors reveals some compelling reasons behind this robust upswing.
Сapital injection can be a game-changer. Recently, Near Protocol managed to raise an impressive sum of $350 million in a funding round. This round was spearheaded by renowned digital investor Tiger Global. Such a substantial capital infusion not only bolstered the project’s financial standing but also played a pivotal role in amplifying investor confidence.
Source: TradingViewWhen a heavyweight investor like Tiger Global shows trust in a project, it invariably serves as a strong endorsement in the eyes of retail and institutional investors. However, it creates certain risks for retail investors who might act as whenever larger players decide to cash out.
Layer-1 protocol NEAR took a significant step forward in fortifying its network’s security. The platform announced its partnership with Nym, an esteemed blockchain security firm, to introduce end-to-end encryption and metadata privacy services within its ecosystem. Nym, which operates as a “Layer-0” privacy infrastructure provider, will now be sharing its expertise in mixnet tools with NEAR. This collaboration is aimed at encrypting and camouflaging blockchain traffic, thus shielding the data during its transition.
The primary goal behind this strategic alliance is to offer enhanced security and privacy to NEAR users. With the rise of decentralized applications (DApps), DeFi protocols and NFTs, the need for impeccable security is paramount. Nym’s tools will address the inherent vulnerabilities present in permissionless blockchains, where transaction data, IP addresses and even geolocation data can sometimes be accessed by adept users. This exposure can pave the way for undesirable surveillance, pinpointed attacks and other forms of cyber threats.
Analyzing the daily chart of NEAR, it is evident that the recent is not just a flash in the pan. The positive news surrounding the funding round and the partnership with Nym has had a clear reflection in the price trajectory. The increased volume and bullish candles, especially in recent days, indicate strong buying sentiment on the market. Furthermore, consolidation periods between the rally hint at healthy price action, making it less susceptible to abrupt bearish reversals.
forms something eye-catching
As we dive deeper into the cryptocurrency market’s charts, it is essential to identify potential patterns that could hint at future price movements. One such intriguing pattern seems to be forming for Ethereum (ETH) on its daily chart. With keen observation, a semblance of the classic “cup” formation comes into view. However, it is essential to note that the pattern has n’ot fully developed yet, and whether it comes to fruition or not remains to be seen.
The cup and handle is a bullish continuation pattern that begins with a rounding bottom and is followed by a consolidation phase, the handle. The key to this pattern is the U-shaped cup formation, which appears to be in the process of forming for .
On the Ethereum chart, we can see a rounded bottom taking shape since mid-August. The current price movement, approaching the resistance at approximately $1,873, is crucial in determining if the cup formation will be completed. A successful breakout above this resistance could confirm the cup’s formation and potentially signify a bullish rally for Ethereum.
However, while the current chart shows promising signs, it is essential to approach this with a level of skepticism. The pattern is still in its infancy, and predicting the final formation of the cup would be premature. Several factors could impact Ethereum’s price movement, both from the broader crypto market and Ethereum-specific developments.