Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon

• Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27.
• Amid growing bearish activity, $NEAR could drop 10% to the $6.00 psychological level before a potential recovery.
• A break and close above $7.95 would invalidate the downleg thesis.

Near Protocol ($NEAR) price is trading with a bullish bias, and has completed a full swing recovery following a 42% drop. However, the recovery may be cut short as bears align to sell $NEAR token.

Near Protocol price risks 10% correction

After a 55% recovery rally from the April 13 low of $4.27, the Near Protocol price looks primed for a correction. With a huge supply zone hovering above the price between $6.98 and $8.90, the altcoin could make a 10% correction to find initial support around the $6.00 psychological level.

Based on the volume profile indicator, there is a lot of bearish activity near the $7.00 price level, just above the current $NEAR token price. Large spikes of the volume profile (grey) have indicated this. These spikes point to many sellers entering the $NEAR market at current price levels and could potentially lead to a decrease in price if the selling pressure continues.

A series of bearish spikes on the volume profile could signal a potential trend reversal from bullish to bearish, indicating a shift in market sentiment and direction. For confirmation, traders should watch to see whether the Relative Strength Index (RSI) produces a lower high below the ‘50’ mean level on the daily timeframe.

In a dire case where the $6.00 level fails to hold as support, the Near Protocol price could extend the fall to the 50-day Smooth Moving Average (SMMA) at $5.31, or worse, test the $5.13 support level before a recovery.

$NEAR/USDT 1-day chart

On the other hand, if the bulls are able to break above the bearish cloud, confirmed by a daily candlestick close above the midline of the supply zone at $7.95, it would negate the bearish thesis. Such a directional bias could see $NEAR price extend the gains to reclaim the $9.01 range high.