NEAR Protocol price continued to decline after encountering obstacles at higher levels. It is forming a bearish pattern and is gradually eroding the previous month’s gains.
NEAR price failed to sustain the $4.64 level at the end of December and reversed downward. It indicates buyers can’t maintain the bullish pressure and went down. Currently, NEAR Protocol crypto is in a robust decline, having dropped below both the EMAs. It indicates that sellers are in command and the directional trend is downward. However, NEAR began February on a bearish note and it appears bears are strengthening their hold.
Technical Analysis
The chart pattern of this cryptocurrency is highly bearish. So any short-term rebound might be an opportunity for short sellers. Until NEAR regains the $3.50 level and remains above it, the sellers will maintain their dominance and constrain the uptrend.
NEAR Protocol is back to the breakout level at $2.756, from where it gained momentum. If the price declines further and drops below it, be prepared for new lows.
Will the NEAR Protocol Price keep going down or will it bounce?
The price lost its bullish strength and caught the short-term bulls at higher levels. After examining the price behaviour, it can be stated that the NEAR price was inflated by the speculators for mutual benefits. The bubble is now deflating due to which prominent players are departing, which is evident in the chart. So, it’s preferable to abstain from making any bets. The volatility in NEAR crypto is high.
NEAR ranks among the top cryptocurrencies. Since this volatility is high, abrupt moves in any direction may occur anytime. It raised expectations for a bullish trend reversal, but as time elapsed, it became apparent that the prior move was merely a deception. Until some prominent investors invest money, it could be easier for NEAR Protocol to recover. The short-term traders may seek to sell on the rise for profits. However, long-term investors must avoid it until any credible sign of turnaround is visible.
Summary
NEAR Protocol price plummeted after it encountered resistance at the $4.64 level. The chart pattern vividly indicates that the surge was merely a deception and lacked genuine buying interest. Consequently, further decline is probable in NEAR. So, it’s preferable to abstain from investing in it.
The VR Soldier analysts are very optimistic on the long-term outlook for NEAR Protocol, and especially when it comes to the major updates set to happen in the blockchain. One of these main updates is the “Stateless validation” upgrade, which is a massive initiative that has been under development for several months and its expected to take place in Q2 2024.
