NMR price has backtracked some of its gains following a skyrocketing rally after Numerai secured an investment from banking giant JPMorgan.

According to data from crypto.news, Numeraire (NMR), the native token of the crowdsourced quant hedge fund Numerai, surged 142% to an intraday high of $19.55 on Aug. 27, marking its highest level since December of last year. 

Today’s rally also confirmed a breakout from a three-month consolidation phase, during which the token traded within a narrow range between $6.50 and $10.

It also coincided with a massive surge in daily trading volume. In the past 24 hours, its daily trading volume went up over 5,000% as traders exchanged over $548 million worth of tokens.

NMR’s gains followed Numerai’s recent announcement that it had secured a $500 million investment commitment from JPMorgan. The deal more than doubles Numerai’s assets under management, which previously stood at $450 million.

The backing from the investment banking giant adds a layer of institutional credibility to the San Francisco-based quant hedge fund and potentially unlocks new revenue streams.

With a larger pool of capital under management, Numerai stands to increase its fee-based earnings, which could drive investor interest in its long-term business model.

As of press time, NMR has pared back some of its earlier gains, dropping to $14.64, a typical market response following such a sharp, short-term rally, as investors likely moved to lock in profits.

NMR Technical Analysis: Mixed Signals Emerge

On the daily chart, NMR has confirmed a golden cross, with the 50-day simple moving average crossing above the 200-day SMA, a formation typically interpreted by traders as a bullish continuation signal.

However, caution is warranted in the short term. The Relative Strength Index has reached overbought territory at 80.

While an RSI above 70 does not necessarily signal an imminent reversal, it often precedes periods of consolidation or short-term correction.

NMR Price Targets and Future Outlook

If bullish momentum remains intact, the next potential target for NMR lies at $22, representing a 50% gain from the current price level. A decisive breakout above that level could open the door for a retest of the December 2024 high near $26. The cryptocurrency market has been experiencing increased institutional adoption, with major financial institutions like JPMorgan leading the way in traditional finance integration with digital assets. This trend aligns with broader market dynamics affecting the entire crypto ecosystem, including established cryptocurrencies like Bitcoin and Ethereum.