NEAR Protocol [NEAR] experienced its strongest monthly advance on record in September.
After trading in a range of $1–$2 for months, NEAR broke above $2, then $3, and eventually $5. The month ended with NEAR crypto token at $5.57, compared to an opening price of $1.92.
The rally took NEAR into a multi-year resistance zone where previous recoveries had been capped. Now, buyers are faced with the challenge of holding onto the gains made before sellers take control once again.
As NEAR retraces back to around $4.65 in October, it becomes a critical level to watch. Maintaining the breakout area would confirm the current trend reversal and prevent the recent price surge from being just a temporary bounce.
Can ETF inflows sustain NEAR’s recovery?
NEAR’s recovery is being tested by the ability of institutional demand to absorb the pullback following the rally. Bitwise’s NRR ETF saw significant inflows of $35.5 million on its launch day, followed by $13.2 million and approximately $9 million in the subsequent sessions.
This brought total inflows to around $57.7 million.
NEAR’s ability to sustain its recovery hinges on whether institutional demand can absorb the dip buying that typically follows a rally.
The Bitwise NRR ETF attracted $35.5 million on its first day of trading, followed by $13.2 million and approximately $9 million on the following days, totaling nearly $58 million in inflows.
Since creating an ETF involves purchasing NEAR, each inflow creates immediate demand as the current price hovers around $4.73.
During the same period, NEAR saw a 1.7% increase with $444.7 million in spot volumes traded. Over a seven-day period, $457.6K was repurchased.
Therefore, continuous ETF creations could provide further support for NEAR and potentially extend the momentum from September’s breakout.
NEAR faces a crucial test following its breakout
The pullback in NEAR’s price will determine if the uptrend established in September is sustainable or just a temporary bounce.
After trading between $0.861 and $1.80 for an extended period, the price surged towards $5.54. However, resistance remains around $6–$6.40, where previous rallies encountered selling pressure.
Buyers now have the task of overcoming this resistance. Despite the retreat to $4.78, it does not necessarily signal a bearish reversal.
If NEAR can hold above $4.50-4.69, it would indicate strength and pave the way for a potential move towards $8.30 and $10.00.
However, a drop below $4.50 could cast doubt on the bullish scenario. A successful breakout above $6.40, on the other hand, would signal strong buying interest and increase NEAR’s upside potential.
Key Takeaways
- NEAR Protocol saw a remarkable 178% gain in September, with $4.50–$4.69 serving as crucial support levels.
- NEAR aims for $8.30–$10.00 above $6.40, backed by sustained ETF demand.
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