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Near Protocol Price Prediction – NEAR Targets $3 as Trading Volumes Surge

Highlights:

  • NEAR jumped 14% to $2.70 as trading volume rose 78% to $1.21 billion.
  • Investor confidence improved after privacy upgrades and AI scaling plans through dynamic resharding.
  • Analysts say quantum-safe security and AI hype could push NEAR toward $3.

NEAR Protocol (NEAR) is one of the top performers today, outpacing most top-100 cryptocurrencies. When writing, NEAR was trading at $2.70, up 13.99% in the day. NEAR Protocol trading volumes are also rising throughout the day. They are currently up by 78% to $1.21 billion. Rising volumes alongside the price indicate that bulls are firmly in control, and NEAR could be headed much higher in the short- to medium-term. 

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NEAR Upgrades In AI Driving Positive Investor Sentiment

The key factor driving NEAR Protocol’s rising momentum was the recent upgrades that have enhanced user privacy during transactions. Between May 20 and 22, NEAR introduced new tools that remove a user’s private information before processing a transaction.

The NEAR Protocol team also announced upcoming upgrades to improve AI scaling. The upgrade enables dynamic resharding, allowing the network to automatically increase or decrease the number of shards in response to demand. The two announcements have excited the market for two reasons.

First, privacy in finance is becoming a real problem as AI advances. As such, by introducing a feature that guarantees user privacy, NEAR could see an exponential increase in users in the long term. This, by extension, means long-term growth to the value of NEAR, the token that governs the NEAR Protocol ecosystem. Then there is the hype factor. AI is still one of the hottest narratives in the financial markets at the moment.

As such, now that NEAR is making upgrades that better align it with the AI space, FOMO could send it rocketing to new highs in the foreseeable future. Investors are already coming in strongly, as evidenced by NEAR’s price action, which indicates expectations of a move uncorrelated with the rest of the cryptocurrency market. 

Quantum-Proofing NEAR Likely to Send the Price Higher

Investors are also excited that part of the upcoming upgrades is set to make NEAR Protocol quantum-safe. Alongside the upcoming automatic resharding for AI, Near Protocol will also be introducing post-quantum-safe signing. This is a big deal, given that Google recently announced that quantum computers are getting closer to breaking the current encryption standard.

The news from Google sent shockwaves across the markets. However, now that Near Protocol is positioning itself as quantum-safe, the odds are high that NEAR could continue to attract investors going forward. It is a factor that could send its value to new highs as investors pivot towards safety. 

Social Media Hype Around NEAR Could Push the Price Higher

Beyond improving core fundamentals, NEAR stands to benefit from growing analyst hype. Multiple analysts are in concurrence that this NEAR breakout could be the beginning of something big. This is a big deal because analysts can shape narratives on social media. As social media hype around Near Protocol grows, retail capital could send its price to new highs in the short- to medium-term.

Such narratives are likely to capture investor sentiment because most cryptocurrencies continue to show weakness in the short term. As such, capital is likely to flow more strongly into cryptocurrencies with real potential, such as NEAR. 

Technical Analysis – NEAR In A Breakout After Multi-Month Consolidation

 NEAR Protocol is in a breakout after a multi-month consolidation between $0.960 and $1.85. If bulls sustain the momentum, NEAR could reach $3 in the short term.

NEAR Price Chart
NEAR Price Chart: TradingView

On the other hand, if the bulls lose momentum, two scenarios could play out. The first is a consolidation above $1.85, which is now support. The other scenario is where bears could send NEAR through the $1.85 support. Of these scenarios, a rally to $3 is more likely. That’s due to rising bullish momentum around NEAR, driven by its AI advances and quantum-proof features.

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