NEAR's 32% Surge: Analyzing the Move Toward $3.17

The recent growth is driven by Thorwallet's cross-chain integration, a halving event, and increased derivatives activity.
Strong buying pressure and a positive sentiment indicate potential for additional gains if the current momentum continues.
NEAR Protocol [NEAR] is enhancing its cross-chain capabilities following Thorwallet's integration with NEAR Intents, which allows for seamless swapping among various blockchains.
This development is seen as a critical advancement toward building a fully integrated DeFi ecosystem.
Following this news, NEAR's token price has increased by over 32% at the time of this report.

Key Takeaways

The recent growth is driven by Thorwallet's cross-chain integration, a halving event, and increased derivatives activity.
Strong buying pressure and a positive sentiment indicate potential for additional gains if the current momentum continues.
NEAR Protocol [NEAR] is enhancing its cross-chain capabilities following Thorwallet's integration with NEAR Intents, which allows for seamless swapping among various blockchains.
This development is seen as a critical advancement toward building a fully integrated DeFi ecosystem.
Following this news, NEAR's token price has increased by over 32% at the time of this report.

NEAR Surges 18%

Halving Event Reduces Supply

In addition to the Thorwallet integration, NEAR underwent a halving upgrade on October 30. This halving has effectively decreased the circulating token supply, even as institutional demand continues to grow. According to updates shared with the community, this upgrade lowered the maximum annual inflation rate of NEAR Protocol from 5% to 2.5%. The difference between the diminishing supply and rising demand may soon create a deflationary supply shock, potentially catalyzing stronger upward price movement. Historically, halving events have garnered speculative interest, as traders anticipate a tighter supply leading to higher prices. NEAR appears to be following the same pattern as major assets like Bitcoin, with increasing participation from both spot and derivatives traders.

Open Interest Surge Signals Bullish Trends

In the derivatives market, institutional investors are making significant moves with NEAR. Recent data from Coinalyze shows that NEAR's Open Interest (OI) has skyrocketed to $219 million in the past 24 hours. NEAR open interests Source: Coinalyze

This increase corresponds with bullish liquidity heatmaps highlighting increased buying pressure across crucial price ranges. CoinGlass's Liquidity Heat Maps indicate a notable liquidity cluster of $786K around the $3.17 mark. This cluster establishes $3.17 as a key target for traders to watch. NEAR liquidation heat map Source: CoinGlass

Together, these positive signals reflect strong confidence among both retail and institutional traders that NEAR's recent gains could continue.

What Lies Ahead for NEAR?

With the combined momentum from the Thorwallet integration, the halving event, and the rising Open Interest, the pressing question for investors and traders is whether the escalating demand will generate enough bullish pressure to sustain the current rally. If the token can maintain its position above crucial support levels and the momentum indicators remain positive, there’s a possibility of pushing toward the next significant resistance levels. Currently, market sentiment is optimistic, and NEAR seems ready to take advantage of its expanding ecosystem and limited supply.