NEAR Protocol Total Value Locked Supports NEAR Move Northwards

Key Insights:

• Near Protocol (NEAR) continues to buck the broader crypto market trend in April.
• The upward price trend comes as Near Protocol’s total value locked breaks the $350 million barrier.
• Technical indicators are bullish, with NEAR sitting above the 50-day EMA.

On Tuesday, NEAR rose by 2.93%. Following a 1.65% gain from Monday, NEAR ended the day at $16.52.

While tracking the broader market on Monday, NEAR has bucked the broader crypto market trend through April.

For the current month, NEAR is up 24.1%. By contrast, Bitcoin (BTC) is down 11.9%, with Solana (SOL) down 15.9%.

While several factors have provided near-term support, the market focus on total value locked has been key to the April gains.

Total Value Locked Delivers NEAR Support

According to Defi Llama, NEAR’s total value locked (TVL) surged to a new all-time high of $374.14m this morning. On December 31, 2021, NEAR’s TVL stood at just $136.61m.

The upward trend in TVL has been key to NEAR price action in recent months. Year-to-date, the TVL has surged by 174%, diverging from NEAR’s more modest price gain of 24.1%.

The current divergence between TVL and price suggests further upside ahead. Much, however, will depend on market forces that have pegged NEAR back from revisiting its January all-time high of $20.48.

Other positive forces include the launch of the NEAR Foundation and acceleration in NEAR addresses. Last week, FX Empire reported the launch of the NEAR Foundation to drive the development of network projects and new address numbers.

According to the report, the Near Protocol users based surged by 139% to 5.3 million in the first quarter.

What is Total Value Locked, and Why Does it Matter?

The total value locked is the value of crypto assets deposited in a DeFi protocol. In recent months, TVL has drawn significant interest. Traders consider the TVL a key metric in measuring market interest and native token value.

The market will be looking for divergence between the TVL and the market cap of a token. Buying or selling opportunities present themselves at times of greatest TVL and price divergence.

NEAR Price Action

At the time of writing, NEAR was up 0.54% to $16.61.

Technical Indicators

NEAR will need to avoid the $16.45 pivot to move through the First Major Resistance Level at $17.05.

Broader market sentiment would need to improve to support a move through a Tuesday high of $16.98.

In the event of another extended rally, NEAR should test the Second Major Resistance Level at $17.59 and resistance at $18.

A fall through the pivot would bring the First Major Support Level at $15.91 into play. Barring an extended sell-off throughout the day, NEAR should avoid sub-$15.50. The Second Major Support Level sits at $15.31.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. As a result of the current breakout, NEAR currently sits above the 50-day EMA at $16.18. This morning, the 50-day EMA pulled away from the 100-day EMA. We also saw the 100-day EMA move away from the 200-day EMA; NEAR price positive.

NEAR would need to avoid the 50-day EMA to support a return to $20 to target a January ATH of $20.48.