NEAR Token Surges 9.77% on Bitwise ETP Launch

NEAR Protocol, a blockchain platform focused on AI, experienced a significant surge in its native token, NEAR, which rose by 9.77% from $2.15 to $2.36 between July 2 and July 3. This rally was driven by strong bullish momentum, breaking through the $2.30 resistance level with substantial volume confirmation. The surge was attributed to the announcement by fund manager Bitwise of the launch of a NEAR exchange-traded product (ETP) in Germany, which provided a regulated, exchange-traded way for institutions to earn staking rewards within the NEAR ecosystem.

However, the rally was short-lived as profit-taking emerged shortly after reaching the new high of $2.36. The price retraced to $2.27 by the session close, finding support at the 23.6% Fibonacci retracement level. This level of support at $2.26 is crucial as it indicates the token's potential to consolidate before continuing its upward trajectory. The technical analysis suggests that the underlying uptrend remains intact, despite the short-term bearish pressure.

During the 60-minute period from 3 July 14:50 to 15:49, NEAR experienced a steep sell-off at 15:04-15:07, where volume spiked to over 310,000 units. This sell-off established a new support zone between $2.26 and $2.27, with the closing price of $2.26 suggesting continued bearish pressure in the short term. The token's ability to hold above this support level will be critical in determining its next move.

Illia Polosukhin, a key figure in the NEAR ecosystem, highlighted the significance of the NEAR Staking ETP on Xetra, stating that it opens a new bridge to NEAR for institutions by providing a regulated, exchange-traded way to earn staking rewards. This development is expected to attract more institutional investors to the NEAR ecosystem, further boosting the token's value in the long run.

In summary, the NEAR token's recent surge and subsequent profit-taking highlight the volatile nature of the cryptocurrency market. While the token has established a key support level at $2.26, its ability to maintain this level will be crucial in determining its future price movements. The launch of the NEAR Staking ETP in Germany is a significant development that could attract more institutional investors to the NEAR ecosystem, potentially driving the token's value higher in the long term. However, traders should remain cautious and monitor the token's price movements closely, as the market remains highly volatile.