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- Following the broader market’s weakness, the NEAR Protocol price has recently declined.
- The token was traded below key moving averages at press time, indicating a bearish trend.
Bears took over the market after a few days of inclining in Near Protocol (NEAR) this week. They succeeded in painting the token’s chart red.
NEAR Bulls managed to control this week’s momentum up to some points. However, they failed beyond the 20-day EMA band. Things worsened in the past 24 hours as the NEAR price value decreased by over 3.15%.
Did Bluechip Cryptocurrencies Cause The NEAR Protocol Slip?
The NEAR Protocol price dipped toward the recent demand zone of $3.25, following the intraday volatility of the broader market. Blue-chip cryptocurrencies like Bitcoin and Ethereum slipped, raising concerns about a further drawdown in the altcoins.
Does NEAR Demand Waning?
As per the DefiLlama, the total value locked (TVL) peaked in the first quarter and increased by 360 million. However, since then, the demand for tokens has been waning.
The total TVL of NEAR Protocol was $195.62 Million at the time of writing. The staking has decreased by nearly half in the last 5 months.
Therefore, the decrease in TVL over time in the NEAR Protocol reflects the decrease in demand for the project and investors’ willingness to stay invested.
Bullish or Bearish: NEAR’s Outlook for This Month
In 2024, the NEAR Protocol saw impressive gains in the first quarter. However, the NEAR price experienced significant declines during the second and part of the third quarter.
The price has shown signs of recovery attempts after establishing support at a previous demand zone. Unfortunately, those attempts were not successful.
As of now, NEAR crypto is trading around $3.93, with a market capitalization of approximately $4.39 Billion.
The daily chart for NEAR Protocol revealed a declining channel pattern. The price fluctuating between the upper and lower boundaries accompanied this.
NEAR’s price remained range-bound throughout August, with $3.25 as support and $5 as resistance.
NEAR Price Prediction and Indicator Overview
On the upside, there is potential for the NEAR Protocol price to reach the $7.5 level. This marked the channel’s upper boundary. However, this would require a breakout above the psychological $5 level.
Currently, the long-term trend appears bearish, posing challenges for NEAR bulls. The price has traded below key Exponential Moving Averages (20, 50, and 200 days). It indicated a weak trend and more favorable conditions for sellers.
The bearish trend could continue if the NEAR Protocol price falls below the $3.25 level. This would potentially drag the price down to $3.
The RSI and the 14-day SMA were flat and below the mean line, suggesting a neutral to bearish short-term outlook. MACD was below the zero line, with a narrow histogram of 0.015, indicating a bearish sentiment.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
