NEAR Protocol (NEAR) Price Prediction: Will the Bitwise NEAR ETF (Tracking the Native Token) Boost the Price?

The price of NEAR, the native token of the NEAR Protocol, has risen slightly in the past few hours. It is currently trading at around $2.30.

This comes amid renewed investor interest as Bitwise, one of the largest digital asset managers in the US, has formally submitted a registration statement to the SEC for a spot NEAR exchange-traded fund (ETF).

The asset manager has also appointed Coinbase Custody as the custodian for the fund.

The filings were disclosed on Friday, May 7.

The specifics of the proposed Bitwise NEAR ETF, including the ticker and listing exchange, are yet to be announced.

The asset manager also confirmed that it plans to file a 19b-4 form to initiate the SEC’s approval process. If approved, the financial product would bring NEAR into mainstream financial markets.

This move follows the recent approval of several Bitcoin futures ETFs by the SEC, which has sparked interest in other crypto ETFs.

Once dubbed an “Ethereum killer”, NEAR Protocol has recently redirected its development focus from DeFi to artificial intelligence infrastructure. It now aims to build the world’s largest open-source large language model, pushing it to the frontier of AI-blockchain integration.

Its latest initiative is to develop a large language model (LLM) called "Weaving" to foster greater adoption of the NEAR blockchain ecosystem.

The project began in August 2024 with the goal of assembling a model on par with or larger than GPT-3, considering the latter's role in sparking the current LLM wave.

NEAR's initiative is noteworthy for its open-source approach, in contrast to models like GPT-4, which are largely closed-source. This strategy prioritizes community involvement and contribution, aligning with NEAR's decentralized ethos.

The project is also noteworthy for its scope and ambition. Models like GPT-3, despite their capabilities, are typically focused on specific domains, such as text generation or code translation. In contrast, NEAR's initiative aims to build a comprehensive LLM capable of handling diverse tasks and learning from multiple data sources.

This breadth of scope could enable the model to achieve greater levels of intelligence and adaptability, pushing the boundaries of what LLMs can do.

As the project progresses, it will be interesting to see how it develops and what impact it has on the NEAR ecosystem and the broader crypto space.

This development highlights the evolving landscape of blockchain technology, with projects increasingly venturing beyond traditional DeFi applications to explore emerging domains like AI and Web3.

NEAR is currently sitting as the 44th largest crypto by market cap at $2.78 billion.

AltCryptoCast's founder Sjuul commented on X that NEAR remains in a "clear bullish trend" and is currently testing a crucial support-resistance flip.

Popular crypto analyst LaCryptoLycus called the altcoin one of the most underappreciated in the current market cycle. He noted NEAR's recent stabilization above the $1.75 support level, suggesting that if the token reclaims the $3.70 level, it could surge to $5 in the coming week.

On the daily NEAR price chart, the RSI sits around 45, suggesting the token is moving slightly toward bearish momentum. If buying interest continues, this neutral territory could offer a base for a potential upward trend.

Meanwhile, Bollinger Bands show a squeeze pattern forming, with NEAR trading just below the mid band (20-day SMA). This compression hints at an upcoming breakout or breakdown, depending on the trading volume.

A sustainable hold above the middle band near $2.40 could mark bullish continuation toward the $2.70-$3.00 zone.

On the other hand, the MACD line just crossed below the signal line, with histogram printing red bars. This generally indicates weakening upward momentum. Still, if bulls manage to cross the $2.20-$2.25 support band, they could see a bullish reversal.