NEAR Protocol Set for Bullish Rally, Driven by Technical Strength and Adoption

According to Real Vision crypto analyst Jamie Coutts, indicators suggest that the Ethereum (ETH) competitor NEAR Protocol (NEAR) is poised for significant growth. Coutts points to the formation of an inverse head and shoulders pattern and strong daily active user growth as evidence of NEAR's bullish potential. He predicts that NEAR could surge over 47% to above $10.50 against the US dollar and continue its upward trend against Bitcoin (NEAR/BTC) and Solana (NEAR/SOL).

Ethereum Competitor NEAR Protocol Primed for a Bullish Surge, Analyst Predicts

Jamie Coutts, a prominent crypto analyst at Real Vision, has issued a bullish outlook for Ethereum (ETH) rival NEAR Protocol (NEAR), citing several key indicators that suggest a potential surge in value.

Bullish Technical Patterns and Momentum

According to Coutts, the technical patterns and momentum indicators for NEAR are painting a highly bullish picture. The cryptocurrency has been consolidating its price momentum since March, forming a bullish technical setup known as an inverse head and shoulders (I-HNS) pattern.

"The I-HNS pattern indicates that buyers are eager to accumulate NEAR without waiting for a price drop, suggesting strong underlying demand," Coutts said.

The analyst further highlights that NEAR's absolute price momentum has been consolidating around $7.60, which represents a resistance level. A breakout above this resistance would trigger a bullish signal, potentially pushing the price towards $10.50 or higher, representing a rally of over 30%.

Positive Relative Strength Against Bitcoin and Solana

Coutts also observes that NEAR's relative strength against Bitcoin (NEAR/BTC) and Solana (NEAR/SOL) is positive and poised for a breakout to the upside. This indicates that NEAR is gaining momentum relative to these established cryptocurrencies, further bolstering the bullish case.

Exponential Daily Active User Growth

Beyond technical analysis, Coutts emphasizes the remarkable growth in NEAR's daily active users (DAU). Network data reveals a surge from 50,000 to 1.76 million DAU over the past year. Excluding NEAR itself, the number of DAU across other platforms has increased from 5.4 million to 8.75 million.

"NEAR's user growth rate far exceeds that of other layer-1 and layer-2 projects," Coutts said. "This exponential growth signals strong organic adoption and usage, providing further support for its bullish potential."

Downside Risks and Trading Information

Despite the bullish outlook, Coutts acknowledges potential risks in the crypto market and recommends caution to investors. NEAR's price is currently trading at $7.14, down 3.6% in the last 24 hours.

Investors should conduct thorough research and exercise prudent risk management strategies before making any investment decisions.

Conclusion

Based on the confluence of technical, relative strength, and user growth indicators, Jamie Coutts believes that NEAR Protocol is poised for a significant bull run. While the market remains volatile, the bullish signals suggest that NEAR could rally to new heights in the coming weeks and months.