In recent weeks, the cryptocurrency market has witnessed a remarkable 46% rally in the value of NEAR Protocol (NEAR). While such price surges can be perplexing for investors, a closer look at the underlying factors reveals compelling reasons behind this robust upswing.
One game-changing factor is the substantial capital infusion received by Near Protocol. In a recent funding round, the project successfully raised $350 million, led by prominent digital investor Tiger Global. This not only fortified the project’s financial stability but also significantly boosted investor confidence.
When a heavyweight investor like Tiger Global expresses trust in a project, it serves as a strong endorsement for both retail and institutional investors. However, it also introduces certain risks, as retail investors may follow suit when larger players decide to exit their positions.
NEAR, a Layer-1 protocol, has taken a substantial step in enhancing network security by partnering with Nym, a respected blockchain security firm. This partnership aims to introduce end-to-end encryption and metadata privacy services within NEAR’s ecosystem. Nym, functioning as a “Layer-0” privacy infrastructure provider, will share its expertise in mixnet tools with NEAR to encrypt and obfuscate blockchain traffic, thus safeguarding data during its transmission.
The primary objective of this strategic alliance is to provide improved security and privacy to NEAR users. With the growing prevalence of decentralized applications (DApps), DeFi protocols, and NFTs, the demand for top-notch security is paramount. Nym’s tools address inherent vulnerabilities in permissionless blockchains, where transaction data, IP addresses, and even geolocation data may be accessible to skilled individuals, opening the door to unwanted surveillance, targeted attacks, and other cyber threats.
Examining NEAR’s daily chart, it’s clear that the recent surge is more than a fleeting trend. Positive news regarding the funding round and the Nym partnership has had a tangible impact on the price trajectory. Increased trading volume and bullish candles, particularly in recent days, reflect strong buying sentiment. Additionally, consolidation periods within the rally indicate healthy price action, reducing vulnerability to abrupt bearish reversals.
As we explore the cryptocurrency market’s charts, it’s important to identify potential patterns that may hint at future price movements. An intriguing pattern appears to be forming for Ethereum (ETH) on its daily chart – a “cup” formation. It’s worth noting that this pattern is still in its early stages, and its realization is yet to be confirmed.
The cup and handle pattern is a bullish continuation pattern characterized by a rounding bottom followed by a consolidation phase known as the handle. The key feature is the U-shaped cup formation, which seems to be in the process of taking shape for Ethereum.
Observing Ethereum’s chart, a rounded bottom has been developing since mid-August. The current price movement, as it approaches resistance at approximately $1,873, is pivotal in determining whether the cup formation will be completed. A successful breakout above this resistance could validate the cup’s formation and potentially signal a bullish rally for Ethereum.
However, it’s important to approach this with some caution. The pattern is still evolving, and predicting its final formation would be premature. Several factors, including broader market dynamics and Ethereum-specific developments, can influence Ethereum’s price movement.