NEAR surges 32% – Assessing why $3.17 could be next target

Key Takeaways

What’s driving NEAR Protocol’s recent 32% price surge?

The surge is fueled by Thorwallet’s cross-chain integration, a halving event, and rising derivatives activity.

Could NEAR’s rally continue?

Yes, strong buy-side pressure and bullish sentiment suggest potential for further gains if momentum holds.

NEAR Protocol [NEAR] is making big strides in cross-chain functionality after Thorwallet announced its integration with NEAR Intents, enabling seamless swap routes across dozens of blockchains.

Many investors view this development as a significant step toward creating a fully interconnected DeFi ecosystem.

Following the announcement, NEAR’s token price has surged by more than 32% at the time of writing.

Halving event tightens supply

Adding to the recent Thorwallet integration, NEAR completed its halving upgrade on the 30th of October. The halving has effectively reduced the token supply in circulation, despite the rising institutional demand.

According to the token updates to its community members, the upgrade reduced the maximum annual inflation rate of NEAR Protocol from 5% to 2.5%.

The gap between the token’s shrinking supply and rising demand could soon trigger a deflationary supply shock, potentially setting the stage for strong upward price momentum.

Historically, halving events have drawn speculative interest, as traders anticipate tighter supply and higher prices. NEAR appears to be following a similar trajectory to major assets like Bitcoin, with both spot and derivative traders increasingly entering the market.

NEAR Open Interest surge points to…

In the derivatives market, NEAR’s institutional investors are already making large moves. According to the recent Coinalyze data, NEAR’s Open Interest (OI) has surged significantly to $219 million over the past 24 hours, at press time.

Source: Coinalyze

This rise aligns with bullish liquidity heatmaps, which show growing buy-side pressure across key price zones.

The CoinGlass’s Liquidity Heat Maps data indicate a $786K liquidity cluster at around $3.17. The cluster affirms the $3.17 as a key target that traders can look out for.

Source: CoinGlass

Put together, the above positive metrics point to a strong confidence among both retail and institutional traders that NEAR’s recent gains could extend further.

What’s next for NEAR?

With the combined momentum from the Thorwallet integration, halving event, and rising OI. The key question among the investors and traders now is whether the rising demand will accumulate enough bullish pressure to sustain the token’s current rally.

If the token maintains its position above critical support zones and momentum indicators remain bullish, a push toward the next major resistance levels could be in sight.

For now, sentiment leans bullish, and NEAR seems poised to capitalize on its expanding ecosystem and tightening supply.