NEAR Protocol Targets $3 Amid Institutional Adoption and Bullish Momentum
Alvin Lang Jul 17, 2025 07:05
NEAR Protocol is gaining institutional traction, with recent adoption milestones and bullish technical signals pushing its price toward the $3 resistance level.
1. Executive Summary
NEAR Protocol has emerged as a key player in the blockchain space, highlighted by significant institutional adoption, soaring user growth, and ambitious scalability goals. The past week has been pivotal, with NEAR experiencing a 6% gain fueled by institutional activity and trading at $2.76 as bullish sentiment grows. Analysts are eyeing $3 as the next critical resistance level, amid mixed signals from market volatility and security concerns.
2. Recent Market Developments
Institutional Adoption Driving Growth
On July 16, NEAR Protocol gained 6% after Bitwise introduced its NEAR staking ETP on Germany's Xetra exchange, signaling strong institutional interest. Earlier, Grayscale added NEAR to its Decentralized AI Fund with a 28.41% allocation, further boosting European adoption and contributing to a 7.6% rally on July 9.
User Base Expansion
NEAR’s monthly active users surged to 46 million as of July 11, solidifying its position as the second most-used Layer 1 blockchain. This adoption milestone has reinforced confidence in NEAR’s long-term fundamentals.
Bullish Breakout and Recovery
The protocol broke through $2.19 resistance on July 7 with a 61% volume spike, establishing strong support between $2.16 and $2.17. A bullish recovery began on July 14, pushing the price closer to $3, buoyed by solid fundamentals.
Security Incident Averted
While NEAR averted a $10M exploit on July 11, the incident underscored vulnerabilities in DeFi protocols linked to the network. Though confidence wasn’t severely impacted, it remains a focal point for risk-conscious investors.
Scalability Goals
NEAR announced plans to achieve 1 million TPS to support AI-driven applications, a move that could revolutionize blockchain scalability. This ambitious target has bolstered market sentiment, particularly for AI-focused investors.
3. Technical Analysis
Current Price and Momentum
NEAR is trading at $2.76, with a 24-hour change of +3.45%. Key momentum indicators like RSI (69.38) and Stochastic %K (92.38) indicate overbought conditions but signal bullish momentum.
Moving Averages
- Short-term strength is evident with the SMA7 ($2.61) and SMA20 ($2.35) both below the current price.
- The SMA_200 ($3.06) remains a significant resistance level, reflecting a weak long-term trend.
Bollinger Bands and Volatility
- With a %B of 0.9710 and the upper Bollinger Band at $2.79, NEAR is approaching overbought territory.
- ATR(14) at $0.16 highlights moderate volatility, suggesting stable upward movement.
Support and Resistance Levels
- Resistance 1: $2.82 (near-term upside target).
- Resistance 2: $2.99 (key psychological barrier).
- Support 1: $2.02.
- Support 2: $1.79 (firm long-term base).
4. Trading Strategy and Signals
Short-Term Strategy
- Traders should watch for a breakout above $2.82 to target the $3 resistance.
- Overbought conditions may lead to a brief pullback to $2.65, offering an attractive entry point.
Long-Term Strategy
- Accumulating at support levels near $2.02 is advisable for long-term investors, given strong fundamentals and growing adoption.
- Institutional interest and scalability goals position NEAR as a solid hold for 2025 and beyond.
5. Price Predictions and Outlook
- Short-Term: A test of $2.99 resistance is likely in the coming days, contingent on sustained bullish momentum and institutional inflows.
- Mid-Term: If $3 is breached, NEAR could target $3.50-$4.00, supported by adoption milestones and technical advancements like the 1M TPS goal.
- Long-Term: NEAR's scalability initiatives, coupled with its expanding user base, make a return to the $5-$6 range feasible by Q4 2025.
6. Risk Analysis
Market Volatility
The broader cryptocurrency market remains volatile, as evidenced by NEAR’s 4.95% weekly decline on July 13. Traders should remain cautious during market pullbacks.
Security Concerns
Although NEAR successfully averted a major exploit, potential vulnerabilities in its ecosystem could deter cautious institutional investors.
Resistance at $3
Breaking above $3 may require significant volume and positive momentum, given the weak bullish trend reflected by the SMA_200 ($3.06).
7. Conclusion
NEAR Protocol is on a growth trajectory fueled by institutional adoption, user-base expansion, and ambitious technological goals. While short-term volatility remains a concern, the network's fundamentals position it well for continued price appreciation. Traders should monitor critical levels at $2.82 and $3, while long-term investors may find accumulation opportunities during pullbacks. With its sights set on scalability and AI-driven applications, NEAR is poised to remain a contender in the blockchain space.
Image source: Shutterstock.jpg)
