The cryptocurrency market witnessed a dramatic decoupling on May 22, 2026, as NEAR Protocol (NEAR) staged an aggressive rally, surging over 25% in a single day while the broader market faced widespread consolidation. This vertical move, which saw the token climb from monthly lows near $1.25 to break past $2.20, has thrust NEAR into the spotlight as the premier “AI-linked” asset. By examining the convergence of high-volume technical breakouts, derivative liquidations, and major advancements in network architecture, we can decode why NEAR has become the focal point of the current market rotation.
The Catalyst: NVIDIA Earnings and the “Agentic Web”
The fundamental driver of NEAR’s recent strength is its strategic alignment with the artificial intelligence sector. On May 20, 2026, tech giant NVIDIA released its Q1 FY2027 earnings report, revealing $81.6 billion in quarterly revenue—a staggering 85% year-over-year increase. During the call, CEO Jensen Huang declared that “Agentic AI has arrived,” signaling a paradigm shift where AI models move beyond simple chatbots to autonomous agents capable of performing complex tasks.
“Agentic AI has arrived. AI can now do productive and valuable work” – Jensen huang 英伟达财报transcript
读完这份财报让我调整了我整个AI投资方向1. Highspeed Networking
Networking营收$14.8B，同比+263%
增速是Compute(+77%)的2.6倍
几万张GPU互联，网络成了瓶颈
利好 $AVGO $MRVL… pic.twitter.com/SaDggeizo5— Kova (@kovainvest) May 21, 2026
NEAR Protocol has positioned itself as the underlying “execution layer” for this new economy. By providing decentralized infrastructure for AI agents to manage identity, payments, and cross-chain interactions, NEAR has transformed from a general-purpose Layer 1 into an infrastructure backbone for the “Agentic Web.” This narrative gained credibility through recent enterprise-grade updates, most notably the implementation of automatic PII (Personally Identifiable Information) anonymization. By utilizing Trusted Execution Environments (TEEs) powered by NVIDIA GPUs, NEAR now allows developers to scrub sensitive data from AI prompts before they reach external LLMs (Large Language Models) like ChatGPT or Claude, solving a critical privacy bottleneck for enterprise adoption.
New on NEAR AI: automatic PII anonymization.
Paste whatever you want into Claude, ChatGPT, or Gemini; your real passwords, API keys, and emails never leave your machine.
One header turns it on. 🧵 pic.twitter.com/81iLycLCBl
— NEAR AI (@near_ai) May 19, 2026
Technical Breakout: The Anatomy of a Short Squeeze
While narratives provided the momentum, the speed of the rally was amplified by mechanical forces within the derivatives market. For months, NEAR had been trapped within a descending parallel channel, constrained by a multi-year bearish structure. On May 22, the token shattered this ceiling, triggering a cascade of liquidations.
Data from Coinglass confirmed that of the $6.1 million in liquidated positions during the breakout, nearly $5.8 million were short positions. As NEAR punched through the $1.72 resistance level—a pivotal threshold connecting March and mid-May highs—forced buybacks from trapped bears fueled a “short squeeze.” This created a self-reinforcing feedback loop: the rising price forced further liquidations, which required more buying, resulting in a 24-hour trading volume spike of over 144%, reaching nearly $895 million.
Infrastructure Milestones: Dynamic Resharding and Upgrade 2.13
Underpinning the price action is a significant leap in network capability. Foresight News recently reported on the upcoming launch of “Dynamic Resharding,” a feature that will allow the NEAR protocol to automatically scale the number of shards based on network demand without the need for manual validator intervention or hard forks.
Currently, scaling the network requires coordinated upgrades and voting; dynamic resharding will automate this process through deterministic splitting verified by state witnesses. This enhancement is crucial for supporting high-throughput infrastructures like NEAR Intents, which facilitate cross-chain swaps and complex settlement. Coupled with the upcoming network upgrade 2.13—which introduces post-quantum secure signatures in June 2026—these technical improvements provide the protocol with a “fundamental anchor” that many speculative AI tokens lack.
Crypto’s best engineering team strikes again.
Dynamic resharding ships in network upgrade 2.13. Shards split automatically when state size crosses a threshold, validated by state witnesses, no validator vote required. The chain adds capacity on demand, the same way Google spins… https://t.co/FHsiaVMPyA pic.twitter.com/E1EfjM0WL2
— Vadim (AI, ⋈) (@zacodil) May 21, 2026
Market Sentiment and Tokenomics
The bullish sentiment is further bolstered by a strategic shift in tokenomics. A governance proposal approved in late 2025 successfully reduced the maximum annual inflation rate from 5% to 2.5%. Simultaneously, fees generated from the NEAR Intents system are now programmatically converted into NEAR tokens on the open market, creating a persistent buy-side demand source tied directly to ecosystem usage.
Despite these positives, some analysts have noted a divergence between price and on-chain activity. Token Terminal data indicates that while price has soared, daily active users have been more conservative compared to earlier highs. This suggests that the current rally is driven by anticipatory capital and “smart money” positioning for an AI-dominant 2026, rather than retail-driven dApp usage alone.
Technical Analysis: Where to Next?
The current technical landscape remains bullish but reflects an “overheated” state. On the 4-hour timeframe, the Relative Strength Index (RSI) touched 88, a level that historically signals extreme momentum but also carries the risk of a short-term “cooling” phase.
- Bullish Continuation: If NEAR establishes the $2.00–$2.10 region as a new support floor, the technical path clears toward the 123.6% and 138.2% Fibonacci extension targets at $2.5 and $2.7, respectively. A decisive weekly close above $2.5 could eventually open the door for a macro rally toward the $3.25 supply zone.
- Potential Retracement: The vertical nature of the move means support levels below the current price are thin. Should momentum falter, traders will look to the $1.80 level for consolidation. A drop back below $1.60 would signal a return to the previous range-bound structure, invalidating the immediate breakout thesis.
Conclusion
NEAR Protocol has successfully broken out of a multi-year bearish trend, not by chance, but by positioning itself at the epicenter of the AI and chain-abstraction revolution. By addressing enterprise privacy needs through PII anonymization and preparing for massive scaling via dynamic resharding, the project has provided a substantive roadmap that resonates with institutional interest.
While the token is currently stretched in the short term, the high-volume nature of the breakout and the fundamental shift in tokenomics suggest this is more than a fleeting relief rally. As the “Agentic Web” narrative continues to gain traction, NEAR’s ability to maintain its role as an execution layer for decentralized AI will be the ultimate determinant of its long-term trajectory. For investors, the next 48 hours are critical: if the $2.00 psychological level holds as support, the technical case for a continued rally toward $2.50 becomes increasingly robust.
NEAR Price Prediction FAQ
Why is the NEAR Protocol price surging? The NEAR price surge is driven by a combination of high-volume technical buying, a massive short squeeze that liquidated nearly $5.8 million in short positions, and intense market interest following NVIDIA’s Q1 FY2027 earnings report. Investors have increasingly grouped NEAR with AI-linked assets due to its positioning as an “execution layer” for decentralized AI infrastructure.
What is the “Dynamic Resharding” feature and why does it matter? Dynamic Resharding is an upcoming network upgrade that allows the protocol to automatically increase the number of shards based on network demand without manual intervention. Previously, this required a complete protocol upgrade, including validator coordination and voting. This feature significantly enhances NEAR’s horizontal scalability, allowing it to support high-throughput infrastructures like NEAR Intents as they grow.
How does NEAR’s new AI privacy tool affect the token? NEAR recently introduced automatic PII (Personally Identifiable Information) anonymization for AI prompts. This feature allows developers to remove sensitive data—such as passwords or API keys—before requests are routed to external AI models like ChatGPT or Claude. By addressing enterprise-grade privacy and security concerns, this tool makes the network more attractive for businesses integrating generative AI, which can drive on-chain activity and demand for NEAR blockspace.
What are the key technical support and resistance levels for NEAR? Following the recent breakout above the $1.72 resistance trendline, NEAR has established strong momentum. Currently, the $2.5 level acts as a critical psychological and technical support. If this holds, the next major resistance zones are identified between $2.7 and $3, with a longer-term macro target near $3.25. Conversely, a failure to hold $1.80 could trigger a retracement toward the $1.60 support area.
Is the current NEAR rally sustainable? While technical indicators like the RSI have reached overbought territory (near 88 on the 4-hour chart), the rally is supported by a 144% spike in 24-hour trading volume, which suggests genuine spot market conviction rather than purely speculative volatility. While short-term pullbacks are possible to “cool off” overheated momentum, the project’s focus on the “Agentic Web,” reduced annual inflation (from 5% to 2.5%), and the programmatic conversion of protocol fees into NEAR tokens provide a more fundamental anchor compared to earlier speculative spikes.
