NEAR Protocol (NEAR) is at a critical juncture. The token has been on a downward spiral, losing 37% of its value over the past month. In the last 24 hours alone, NEAR dropped 3.80%, pushing its price down to $3.38. Investors are left questioning whether a recovery is in store or if the declines will persist.
Support Level at Risk
NEAR’s price recently fell below its key support level of $3.50, a threshold it had maintained during a period of consolidation between $3.50 and $8.30. Although it briefly reclaimed the $3.50 mark, uncertainty looms. The token has shown some signs of a minor recovery, but this could just be a temporary uptick in a larger bearish trend. If NEAR cannot stay above $3.50, it risks further declines, confirming the continuation of its downtrend.
Bearish Sentiment Dominates
Market indicators paint a mixed picture for NEAR. On the bearish side, the negative Funding Rate of -0.0170 signals that sellers dominate the market. This suggests traders expect more price drops, creating additional downward pressure. Additionally, long positions are being liquidated at a much higher rate than shorts, with $137,140 worth of long positions liquidated in the past 24 hours compared to only $24,170 in short liquidations. This further indicates that bears are in control, at least for now.
A Hint of Bullishness
However, not all signs point to doom and gloom. The Taker Buy-Sell Ratio shows a slight edge for buyers, with a ratio of 1.004, meaning buying volume has marginally outpaced selling volume. This suggests a small degree of bullish sentiment. Yet, this shift alone isn’t enough to break the prevailing bearish trend unless buying volume increases significantly.
Network Activity Takes a Hit
NEAR also faces a concerning decline in active addresses on its network. In just a few days, daily active addresses dropped from 4.2 million to 3.0 million. This sharp decrease indicates that traders are likely exiting their positions as the price continues to fall. The drop in active users also points to a potential slowdown in network growth, suggesting weak support from the broader community. If this trend continues, selling pressure could intensify, pushing prices even lower.
What’s Next for NEAR?
NEAR’s path remains uncertain. While there are brief moments of hope, such as the attempt to reclaim its support level, the overall sentiment is still bearish. Investors will need to stay alert, watching for shifts in buying volume and whether support levels hold. If selling pressure continues, NEAR could face further declines. However, if buyers step in with stronger volume, the token could see a potential reversal.
In the coming days, the market’s mood will be crucial in determining NEAR’s fate. Until clearer signs emerge, NEAR Protocol will likely remain stuck in a volatile and uncertain phase.
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