NEAR Protocol (NEAR) Surges 9%…Will Spot ETF Push It Past $5.55?

▲ NEAR Protocol/Source: X ©

NEAR Protocol (NEAR) surged over 9% in a single day, reaching $5.47. While Bitcoin (BTC) remained largely stagnant, the combination of spot NEAR ETF approval and an increase in Open Interest led NEAR to significantly outperform the market.

According to CoinMarketCap, a cryptocurrency market data aggregator, on September 27 (local time), NEAR Protocol recorded a 9.35% increase over 24 hours, reaching $5.47. The biggest catalyst for the surge was the final approval of a spot NEAR ETF by Bitwise Investment Advisers. This ETF is set to be listed on NYSE Arca under the ticker NRR, with a public launch expected around the 29th.

NRR plans a structure where 100% of its held assets will be staked, and approximately 67% of the generated rewards will be provided to shareholders. This is expected to open a path for investors to access NEAR through their existing brokerage accounts and earn staking yields. The actual launch of the ETF and the initial influx of funds in the future have been identified as key indicators to confirm institutional investor demand.

The bullish trend also strengthened in the derivatives market. NEAR's nominal Open Interest jumped 8.5% in one hour to $286.9 million, marking one of the largest hourly increases in the past two months. NEAR ecosystem tokens, NEARKAT (KAT) and BLACKDRAGON (BLACKDRAGON), also ranked high in 24-hour gains, indicating a widespread buying trend across the ecosystem. However, the expansion of leveraged positions was pointed out as a factor that could increase price volatility.

Technically, short-term overheating signals are appearing. The 7-day Relative Strength Index (RSI) entered the overbought zone at 77.51. Key resistance levels are presented between the 23.6% Fibonacci Retracement level of $5.37 and the recent high of $5.55. If $5.55 is breached, the 127.2% Fibonacci Extension level of $5.77 is mentioned as the next target zone.

Conversely, the key support level to maintain the uptrend is $4.82. If this price level holds, the recent upward structure can be maintained, but an analysis suggests that a short-term correction is also possible if overbought pressure materializes. The market is focusing on whether NEAR can maintain its upward trend above $4.82 after the NRR ETF launch, expected this week, and whether actual ETF fund inflows will follow.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*