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Near Protocol (NEAR) experienced a rejection at the 50-day EMA mark and witnessed a decline this week. However, the possibility of pullback is still on the horizon and it could see a bounce soon.
Starting the week on a positive note, buyers had aimed to breach the $5 mark, but due to the lack of investor interest, a five-day losing streak was observed. The token slipped to the 20 day EMA crucial support under strong bearish pressure.
Despite the minor ongoing price decline and a significant rejection from the trendline barrier of $5, a short-term pullback is anticipated and the token may catch bullish movements in the coming sessions.
From the $5 mark, sellers pushed the token and added fresh short positions, upping the pressure on the bulls. This resulted in a bearish reversal.
NEAR Struggles to Sustain
The daily chart of Near token exhibits a series of lower lows as it persisted in draining gains inside the falling channel. During the market recovery, the token succeeded in pulling back from the demand zone of $3.
NEAR Price Volume Chart Source: Santiment
The buyers are struggling to hold their own as the bearish pressure mounts. It formed its base around the $3 mark and rebounded from there. Trading inside a falling channel, the token persisted in displaying lower low swings and delivered a correction from the top of $7.
Falling over 30% in the last two months, the token came to an end of correction and may see a possible trend reversal soon. In a recent tweet by @CJ, Near token price established strong support near $4. It is poised for an upward movement ahead.
$NEAR
— CJ (@CJ900X) August 28, 2024
Started building a position on NEAR at the $4 mark and TP'd some into the D1 EMA 200. I'm now of the mind that this is forming a larger bottom where we chop around not too far away from Range Low for a couple of weeks, before putting in a reclaim and sending. Think the… pic.twitter.com/2tP8IB3WQ9
Tweet by @CJ Source:X
A daily close above the $5.50 mark would validate the significant bullish momentum and may unlock the doors toward the $7 mark for the short term.
Currently, NEAR traded at $4.39 with a decline of over 1.29% conveying a slight dip in the last 24 hours. Notably, its trading volume dropped by 11% along with price decline, which represents a lower seller optimism.
The Daily RSI line has retraced toward the midline from the overbought zone, indicating a rejection from the peak. It means that selling pressure has been significant, leading to the price drop.
Weighted Sentiment and Volatility Data Outlook
Despite the significant price drop, the weighted sentiment data stayed close to the midline region, noted at -0.157, indicating that investors are neutral.
Weighted Sentiment Data Source: Santiment
However, the price volatility curve remained lower along with the price decline amid weak selling pressure.
Total Value Locked (TVL) Rises
TVL Data Source: DeFiLlama
Since the beginning of this month, the token has been on a recovery track. The rise in TVL to $212.55 Million reflects investor confidence.
If the token finds support around the 20-day EMA, it may regain momentum and go toward the $5 mark, followed by $5.70 in the short term. However, the immediate support zone was around $4, followed by $3.60