NEAR Protocol Surges 17% as Inflation Cut and Staking ETP Boost Price

NEAR Protocol (NEAR) has seen a notable surge in its price, with a 17% increase over the past week, currently trading at $3. This upward trend follows a recovery from a low of $1.80 reached around June 25, which marked the end of a steep downtrend that began in mid-May. This low also formed the second bottom of a double bottom pattern, with the first bottom established in early April and a neckline resistance around $3.40.

The NEAR price is steadily approaching this resistance level, supported by strong bullish momentum. Throughout July, NEAR has remained above the 20-day Exponential Moving Average (EMA), with daily candles growing longer, indicating increasing buying pressure. Before testing the $3.40 neckline resistance, NEAR price faces a minor hurdle at $3.20, a previous swing high from within the recent downtrend. If the price breaks above $3.40, it would confirm the double bottom pattern and suggest a potential target around $5.00, based on the measured move. On the downside, the key support now sits at $2.70, a former resistance level.

The bullish price action of NEAR is accompanied by significant developments within the Near Protocol’s ecosystem. Notably, the community has initiated a validator vote to reduce NEAR’s annual token inflation from 5% to 2.5%. This proposal aims to incentivize long-term holding and reduce sell pressure. If the proposal passes with the required majority (66.67%), core developers will include the new inflation logic in the next protocol upgrade release, expected to be activated by late Q3 2025. This reduction in inflation creates a more deflationary environment, which can support sustained upward price pressure as demand grows.

Additionally, Bitwise’s NEAR Staking ETP has recently been listed on Germany’s Xetra exchange, providing global investors with exposure to NEAR and integrated staking benefits without the need to manage keys or wallets. This development further enhances the bullish outlook for NEAR Protocol, as it increases accessibility and convenience for investors.

Investors and traders are closely monitoring the NEAR Protocol price as it approaches the $3.40 resistance level. A successful breakout above this level would confirm the bullish reversal signal and suggest a potential target of $5.00. However, it is important to note that technical analysis is not a guarantee of future performance, and investors should always conduct their own research and analysis before making investment decisions. Additionally, the cryptocurrency market is highly volatile, and prices can fluctuate rapidly, so investors should be prepared for the possibility of significant price movements.