NEAR Protocol Surges 16%... Did Quantum Computer Security Boost Really Ignite It?

▲ NEAR Protocol/Source: X ©

NEAR Protocol (NEAR) surged over 16% in a single day, fueled by expectations of a security upgrade to counter quantum computers and a rotation into Layer 1 protocols.

According to cryptocurrency market tracking site CoinMarketCap on May 6 (local time), NEAR Protocol traded at $1.53, up 16.80% over the past 24 hours. While the overall cryptocurrency market remained flat, NEAR significantly outperformed the market average with a clear technical breakout and strong trading volume.

The biggest catalyst was the news of Post-Quantum cryptography integration. The media analyzed that the news of NEAR proactively adopting quantum-resistant cryptographic technology for long-term security enhancement quickly spread on social media, stimulating buying interest. Concurrently, trading volume surged by 155% to $430 million, indicating strong buying conviction.

The renewed movement of funds into Layer 1 and Artificial Intelligence (AI)-related sectors also fueled the rally. On the same day, Toncoin (TON) rose 30.25%, and Arweave (AR) rose 19.50%, showing strong rotation across Layer 1 tokens. The media reported that NEAR emerged as a prime beneficiary of the 'AI + Layer 1' narrative.

Technically, NEAR broke above its 7-day and 30-day moving averages, around $1.50. The next major resistance level is identified as $1.59, representing the 127.2% Fibonacci extension derived from recent price action. However, the 14-day Relative Strength Index (RSI) has climbed to 74.15, entering the overbought zone, suggesting the possibility of short-term profit-taking and consolidation.

Experts analyzed that if NEAR maintains the $1.46 Fibonacci support level, it could sustain its upward structure and retest the $1.59 resistance. Conversely, a break below this level could lead to a retracement to around $1.39, indicating a short-term period where strong momentum and overheating concerns are simultaneously at play.

*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.*