-
NEAR Protocol is currently experiencing a notable price surge, showcasing potential for a brief rally despite an overarching bearish outlook.
-
The recent increase in Total Value Locked (TVL) does not overshadow the challenges posed by dwindling user activity and conflicting market signals.
-
“If we observe a death cross on the MACD, we could be looking at a significant downturn for NEAR in the near term,” warned a COINOTAG analyst.
NEAR Protocol shows promise with a 10.42% surge, yet struggles with declining activity and bearish indicators, raising concerns for future price stability.
Steady Growth in Total Value Locked amidst Market Fluctuations
In recent weeks, NEAR Protocol’s Total Value Locked (TVL) has displayed a consistent pattern, ranging between $259.85 million and $236.58 million according to DeFiLlama. This stability in TVL illustrates a degree of user participation, which is critical for maintaining liquidity and overall network health. As of now, the TVL is recorded at $253.52 million, suggesting that while there is some degree of stability, caution is warranted.
Fee Generation: A Key Indicator of On-chain Activity
To understand the nuances of NEAR’s ecosystem, one must examine the associated fee generation. On the 11th day, NEAR recorded its lowest fees at just $21,680. Lower fees often correlate with diminished network usage and can be indicative of reduced interest among users. This drop in fees suggests that while the TVL may remain stable, active participation and engagement are on the decline, which could impact NEAR’s pricing dynamics significantly.
Analyzing Technical Indicators: MACD and RSI Insights
The technical indicators at play for NEAR present a mixed bag. The Moving Average Convergence Divergence (MACD) is hinting at bearish sentiment, with the potential formation of a death cross. This bearish formation often signals increasing downward pressure. Contrastingly, the Relative Strength Index (RSI) has rebounded slightly, indicating mild bullish momentum with a current reading of 50.13. However, being near the neutral line introduces uncertainty, and a decline below this threshold could trigger further bearish behavior.
Merging Perspectives for Future Trajectories
While there is a glimmer of hope with the RSI’s modest recovery, it does not overshadow the critical bearish indicators highlighted by the MACD. Further analysis reveals that the slight fluctuations in the RSI may not be sustainable, especially as the potential for the MACD’s death cross looms closer. Investors would do well to monitor these indicators closely as the NEAR price could potentially revert to bearish patterns despite the recent gains.
Strategic Price Levels to Monitor
From a technical standpoint, NEAR’s trajectory suggests it may encounter resistance within a supply zone before potentially reverting to a support zone. This analysis indicates that NEAR may form a fleeting rally before encountering heavier selling pressure, with targets potentially dropping as low as $2.45. The upcoming price movements will be critical in determining if a bullish reversal can take hold, or if current bearish trends will persist.
Source: TradingView
Conclusion
In summary, while NEAR Protocol has displayed promising short-term gains amid a recovery phase, the underlying technical indicators and declining network activity signal potential hurdles ahead. With key targets established, investors are advised to remain vigilant regarding market trends. The delicate balance between bullish optimism and bearish indicators could dictate NEAR’s price movements, making it crucial for stakeholders to stay informed about upcoming developments.
