Near Protocol has had a good year so far in 2024 and has continued to hold up quite well despite several crashes that have rocked the market. However, it appears that the altcoin may have exhausted its runway, as the cryptocurrency analyst believes the initial breakout of the altcoin was very bearish relative to its price.
Near Protocol Deviates from Wedge Pattern
In early May, Near Protocol price fell to $5.5, then recovered slightly and then formed a wedge pattern. This wedge pattern will keep prices in a tight range for some time. However, around the middle of the month, Near Protocol price broke out of the wedge pattern and began to trend upward.
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After the breakout, the altcoin price recovered by more than 15%, putting the price well above $8, but it did not last long. As the Bitcoin price began to retrace and the cryptocurrency market followed suit, the Near Protocol price also fell. This confirmed that a bearish cap is brewing in the price of the coin.
Crypto analyst Kledji Cuni wrote in a TradingView post that the breakout remains bearish for the price. According to him, the pattern is still very solid, which means that the breakout actually marks the start of a bearish trend.
As for how the price will move from here, analysts expect Near Protocol to continue to fluctuate around its current level of $7.3. However, the downward trend is expected to appear regardless. “Prices can spend some time in the same area before they impulsively drop,” he said.
Downside targets include an initial 8% decline to $6.78. Accordingly, another decline to the $6 level is expected. And finally, analysts expect the downtrend to bottom out around $4.6. This drop would result in a total decline of 37% from current prices.
A twist in the cards?
Recent developments in the Near Protocol indicator lend credence to cryptocurrency analysts’ predictions of an imminent decline. First of all, the coin has been losing money in the last month after starting 2024 off to a very strong start. This is in addition to a notable decline in daily trading volume.
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Near Protocol’s daily trading volume fell by more than 18% to approximately $246 million on the last day. This decline signals a decline in interest in altcoins and could be a contributing factor to their decline.
As of this writing, the Near protocol is trending at $7.3, down 0.89% in the last day and 4.28% over the past week.
Featured image from U.Today, chart from Tradingview.com