In recent weeks, the cryptocurrency market has been abuzz with the remarkable 46% surge in the value of Near Protocol (NEAR). While such substantial price movements might leave investors puzzled, a closer examination of the underlying factors sheds light on the compelling reasons fueling this robust upswing.
A Capital Boost:
Near Protocol recently secured a significant milestone, raising an impressive $350 million in a funding round led by the renowned digital investor Tiger Global. This substantial injection of capital has not only fortified the project’s financial foundation but has also played a pivotal role in bolstering investor confidence.
When heavyweight investors like Tiger Global extend their support to a project, it serves as a resounding endorsement, instilling trust in the eyes of both retail and institutional investors. However, this newfound support does introduce certain risks for retail investors, as larger players may opt to cash out at any moment.
Strengthening Security:
NEAR, a Layer-1 protocol, has taken a decisive step in enhancing its network’s security. The platform recently unveiled a partnership with Nym, a respected blockchain security firm, aimed at implementing end-to-end encryption and metadata privacy services within its ecosystem. Nym, functioning as a “Layer-0” privacy infrastructure provider, will now share its expertise in mixnet tools with NEAR. This collaboration seeks to encrypt and conceal blockchain traffic, providing an added layer of protection to data during its transit.
The primary objective behind this strategic alliance is to offer heightened security and privacy to NEAR users, a crucial aspect given the growing prominence of decentralized applications (DApps), DeFi protocols, and NFTs. Addressing the inherent vulnerabilities in permissionless blockchains, such as the exposure of transaction data, IP addresses, and geolocation data, is essential to mitigate the risks of surveillance, pinpointed attacks, and cyber threats.
Chart Analysis:
An analysis of NEAR’s daily chart indicates that the recent rally is not merely a fleeting event. The positive developments surrounding the funding round and the partnership with Nym have left a discernible mark on the price trajectory. Elevated trading volumes and bullish price candles, particularly in recent days, signify strong buying sentiment in the market. Additionally, consolidation periods observed between the rally phases hint at a healthy price action, making NEAR less susceptible to sudden bearish reversals.
Ethereum’s Emerging Pattern:
As we delve deeper into the cryptocurrency market charts, an intriguing pattern appears to be forming on Ethereum’s (ETH) daily chart. A semblance of the classic “cup” formation is discernible, although it’s important to note that this pattern has not yet fully matured, and its realization remains uncertain.
The “cup and handle” pattern, a bullish continuation pattern, commences with a rounding bottom, followed by a consolidation phase, known as the “handle.” The focal point of this pattern is the U-shaped cup formation, which appears to be in the process of taking shape for Ethereum.
On Ethereum’s chart, a rounded bottom has been developing since mid-August. The current price movement, approaching a crucial resistance level at approximately $1,873, holds significance 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.
Nevertheless, while the current chart displays promising indications, a degree of caution is warranted. The pattern is still in its nascent stages, and predicting the final form of the cup would be premature. Several factors, both within the broader cryptocurrency market and Ethereum-specific developments, could influence Ethereum’s price trajectory in the coming days.
