NEAR Protocol (NEAR) is experiencing a significant downturn, registering an 11.38% loss over the past week and a further 5.74% drop in the last 24 hours. This decline comes amidst a broader market sentiment shaken by Bitcoin's recent volatile movements, which saw the crypto leader briefly rally before a sharp 5.6% plunge, intensifying bearish pressures across altcoins like NEAR.
Current Market Dynamics and Failed Momentum
Despite initial positive signals early in the week, including a 13.1% surge in Open Interest from $122 million to $138 million and an uptick in spot buying volume, the short-term bullish momentum for NEAR could not be sustained. Futures funding rates initially showed optimism, but the overall market fear, exacerbated by Bitcoin's sudden drop, quickly overshadowed these signs. This reversal underscores a strong bearish bias among NEAR traders, transforming what started with hopeful expectations into a sustained downward trajectory.
Critical Breakdown: NEAR's Long-Term Support Fails
A pivotal development in NEAR's price action is its failure to maintain a crucial long-term trading range established since March, extending from $1.82 to $3.38. The altcoin closed a weekly session at $1.59, decisively breaking below both the $1.82 range low and the significant long-term support at $1.72. Technical indicators further reinforce this bearish outlook: the On-Balance Volume (OBV) shows consistent selling pressure, while the Relative Strength Index (RSI) reflects strong downward momentum, trends that have been evident since mid-November. The $1.82 level, once a support, has now flipped to act as resistance, with sellers firmly rejecting any attempts by bulls to recover.
Path Forward: Lower Targets and Short-Selling Opportunities
Given the prevailing evidence, a bullish reversal for NEAR appears highly unlikely in the immediate future. The combination of a strong long-term bearish trend and current market volatility points to further declines, with the next significant long-term support level identified at $0.97. For a bullish bias to even be considered, NEAR would need to reclaim and close above the $1.82 mark, a scenario that currently seems remote. Traders looking to capitalize on this downtrend might find short-selling opportunities if NEAR attempts a retest of the $1.7-$1.8 supply zone, which previously triggered the current bearish impulse, with a daily close above $1.82 serving as an invalidation point for such a trade.
