NEAR Protocol's Milestone Achievement

Recently, NEAR Protocol has made headlines by reaching an impressive milestone of 3 million daily active addresses in the third quarter of 2024. This surge in user engagement signals a burgeoning interest in NEAR, especially as the cryptocurrency market witnesses a remarkable performance by AI tokens.

Impact of AI Tokens

AI-focused cryptocurrencies have seen tremendous growth lately, with notable players like Bittensor (TAO) leading the charge and outperforming the overall cryptocurrency market. NEAR Protocol is also riding this wave of success, boasting a 25% price increase within the last month alone. This notable growth can be attributed to the increasing use of the NEAR network and the rising demand for its services.

NEAR Protocol Outperforming Competitors

According to data from CryptoRank, NEAR Protocol has clinched the title of the leading blockchain network by daily active addresses, overshadowing competitors like Solana (SOL) and Tron (TRX), which recorded 2.4 million and 2.1 million active addresses, respectively. This impressive uptick in activity coincides with a broader uptick in the AI cryptocurrency sector. DappRadar recently reported a staggering 71% growth in AI-related decentralized applications (dApps) in Q3 compared to the previous quarter, highlighting a new and vibrant sector within the cryptocurrency space.

User Engagement in AI dApps

Moreover, AI dApps have demonstrated robust user engagement, recording an average of 4.3 million unique daily active wallets, further emphasizing the growing influence of artificial intelligence within the crypto landscape.

NEAR's Price Performance

However, despite the positive user engagement metrics, NEAR's price performance has been mixed. As of now, NEAR is trading at $4.87 after a slight decline of 2.36% in the last 24 hours, with trading volumes plummeting by more than 30%. The bearish sentiment has been palpable since the beginning of October, as reflected by the Moving Average Convergence Divergence (MACD) indicator, which is currently showing bearish momentum.

Technical Indicators and Market Sentiment

The MACD line's position below the signal line indicates downward pressure, while the red MACD histogram bars reinforce this trend. Buyers remain hesitant, as suggested by the Relative Strength Index (RSI) hovering at neutral territory at 51, although the momentum appears to lean bearish due to the RSI being below the signal line.

If the current trend continues and bears maintain control, we could see NEAR testing the support level around the 0.236 Fibonacci level at approximately $4.761. However, should buyers step back into the market, there's potential for a price surge toward the next resistance level at $5.31, leading to further targets above $6.

Trader Sentiment and Future Outlook

Intriguingly, trader sentiment seems to lean toward a potential recovery. The long/short ratio on Binance suggests that a majority of traders (71%) are taking long positions, betting on NEAR's upward trajectory, while only 28% are shorting the asset.

As the exciting developments in the NEAR Protocol and the broader AI cryptocurrency space unfold, the questions remain: Will NEAR continue to flourish, or will market sentiment lead to further price drops? Only time will tell, but all eyes will be on this rapidly evolving landscape. Don't miss out on the potential opportunities; stay tuned for updates!