What has caused the NEAR token to surge by 50% in the past month? What are the future price expectations?

In the recent market volatility, NEAR (the native token of Near Protocol) has performed exceptionally well, rising by 2.3% in the past 24 hours to a current trading price of $5.21. This price increase follows a drop to a low of $3.41 on September 6, marking a remarkable 57% recovery in just a few weeks and reaching a new high of $5.36, the highest in eight weeks.

Strong Rebound of NEAR

The strong rebound of the NEAR token can be attributed to several key factors. First, the Near Protocol has successfully implemented blockchain sharding, a significant advancement in its technical architecture. Sharding not only enhances the network's scalability and security but also significantly increases transaction speeds while maintaining decentralization. This innovation has allowed NEAR to continuously attract users and developers amid the growing popularity of decentralized applications (DApps).

As demand grows, NEAR's technical advantages become increasingly evident. Compared to mainstream blockchains like Ethereum, the Near Protocol offers clear advantages in transaction speed and fees, with sharding technology providing robust support. As stated by the project team, the implementation of sharding not only addresses the blockchain trilemma but also lays a solid foundation for long-term development.

Market Dynamics and Collaborative Opportunities

The rise in NEAR's price is also closely linked to recent industry dynamics. The partnership between Nvidia and Alibaba Cloud aims to promote the development of autonomous driving technology in China, further stimulating market interest in AI-themed cryptocurrencies, including NEAR. Meanwhile, U.S. Democratic presidential candidate Kamala Harris has also made her first statement regarding the crypto industry, suggesting the creation of an "opportunity economy" for AI and digital assets in America. This policy direction undoubtedly injects new confidence into the crypto market.

Data-Driven Confidence

NEAR's market performance is not coincidental. According to data from the on-chain analysis platform NearBlocks.io, network activity for the NEAR Protocol has significantly increased over the past month, with daily transaction volume rising by 42% and the number of new addresses increasing by 30.8%. This growth directly reflects the rise in project adoption rates and indicates that NEAR's recognition among users is steadily increasing.

Additionally, according to DefiLlama data, NEAR's total value locked (TVL) has surged from $183.7 million to $246.5 million in just a few weeks, an increase of 34%. This phenomenon indicates a significant enhancement in user willingness to utilize and deposit in NEAR-based protocols, reflecting the vitality of its ecosystem.

The derivatives market also reflects strong capital inflows. According to Coinglass data, NEAR's open interest (OI) soared from $114.9 million on September 7 to $279.2 million on September 24, marking a new high since June. This indicates that market interest in NEAR is on the rise, with capital actively entering the market.

Technical Analysis and Future Outlook

On the technical front, NEAR's price movement is encouraging. On September 23, NEAR's price broke through the previous downtrend line and successfully closed above all major moving averages, including the 50-day, 100-day, and 200-day exponential moving averages. These technical indicators have acted as price resistance over the past few months, and the current relative strength index (RSI) stands at 70, indicating strong market buying activity with buyers in control.

Market analysts believe that NEAR's price target may move further towards $6 and could even challenge the $6.45 high. However, if the price closes below the 50-day moving average of $4.40 on the daily chart, it could weaken bullish sentiment, and bears may pull the NEAR price down to $3.50, retesting the low of September 6.

Conclusion

In summary, the rise of the NEAR token is not only a direct result of technological advancements but is also closely related to market dynamics and the policy environment. With increasing attention from more users and investors, the future development potential of NEAR is promising. In the context of evolving blockchain technology and a maturing crypto market, NEAR is poised to face new opportunities and challenges.