[NEAR Protocol (NEAR) Price Affected by AI Hype, Targets $7]
In the cryptocurrency market, the active development of the artificial intelligence (AI) industry has once again impacted the cryptocurrency industry. Recent market activity suggests that NEAR Protocol is following this trend. On June 19, crypto hedge fund Panthera Capital announced that it had raised $1 billion in funding, 15% to 20% of which would be invested in blockchain technology related to artificial intelligence. NEAR Protocol leverages AI and blockchain technology to augment functional decentralized applications, so its native token reacted positively to the news.
Currently, NEAR is trading at $5.40. This price increase is also tied to Nvidia's recent market milestones. On June 18, Nvidia surpassed Microsoft to become the world's most valuable company, with a market value of $3.33 trillion. The news also drove gains in AI-related tokens.
NEAR Protocol development activity is improving, according to Santiment’s on-chain data. Development activity indicators show an increase in contributions to NEAR’s GitHub repository, which is a positive sign for the token price.
Another indicator supporting the bullish forecast for NEAR is its trading volume. NEAR’s trading volume has increased to $308.09 million to date. Increased trading volume means increased buying and selling activity, reinforcing price trends. If volume continues to rise along with price, NEAR could reach $6 within a few days.
Additionally, the Money Flow Index (MFI) Peace Assessment (OBV) also showed signs of increasing buying pressure. The MFI is close to surpassing the 50.00 midpoint level, indicating increased inflows. OBV shows that positive volume flows dominate, which also indicates that NEAR price may continue to rise.
Using Fibonacci retracement level analysis, NEAR could move to $5.70 (61.8% Fibonacci level) if buying pressure increases. In a highly bullish scenario, NEAR is poised to reach 78.6% towards $6.15.
However, this bullish trend may expire if NEAR holders start selling. In addition, lower development activity may also have a negative impact on prices. In this case, the price of NEAR could drop to $5.06.
