J.P. Morgan backs Numeraire with $500 mln – NMR sees 138% rally

Key Takeaways

J.P. Morgan’s $500 million commitment secured by Numerai has fueled the AI-powered hedge fund token’s recent rally, and sentiment behind the altcoin remains bullish.

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Numeraire [NMR], the crypto hedge fund token, has rallied 138.4% since the 26th of August. These gains came after an announcement that J.P. Morgan secured a $500 million capacity in Numerai.

The allocation will be deployed over the next year, and the returns will be tied to the crowdsourced trading models built by data scientists worldwide.

The AI-driven hedge fund has expanded its assets under management to $450 million, with most of the growth occurring in the past three years.

The Numeraire all-time high at $93.15 was set in May 2021. The current market price of $18.79 was nearly 80% lower than this ATH.

The unique blend of crowdsourced prediction models, AI, and blockchain tech could make NMR an appealing prospect for investors.

Charting the way ahead for Numeraire

On the 1-day chart, NMR showed bullish promise. It has broken out of the consolidation phase it had been constrained within from March to late August.

The breakout past $10-$12 occurred on high trading volume, and $12 has been retested as a support level.

The OBV was slowly climbing higher in recent months, and the buying pressure over the past two weeks saw the volume indicator jump higher.

Together, the buying pressure was clear, and sustained demand will propel Numeraire higher.

On the 4-hour chart, the MFI showed a threat of a bearish divergence. This has not yet occurred, but if it develops, it would mean NMR is overextended in the short-term.

A price move past $20 accompanied by a lower high on the MFI is something traders should watch out for on the 4-hour timeframe.

The $16 support zone should be a good place for a pullback to reverse, in case of a pullback. The $18.3 support might be defended over the coming days if NMR enters a short-term consolidation.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion