Near Protocol has had a good year in 2024 so far and has continued to hold up quite nicely despite the multiple crashes that have rocked the market. However, it seems that the altcoin may have exhausted its runway, as a crypto analyst believes its earlier breakout is very bearish for the price.
Near Protocol Breaks Out Of Wedge Pattern
At the start of the month of May, the Near Protocol price had formed a wedge pattern after falling to $5.5 and then recovering slightly. This wedge pattern would hold its price in a tight range for a while. However, by the middle of the month, the Near Protocol price broke out of the wedge pattern and began a move upward.
Following the breakout, the altcoin’s price saw an over 15% recovery that put its price firmly above $8, but this did not last for long. Once the Bitcoin price began to retrace and the crypto market followed, so did the Near Protocol price decline. This confirmed the bearishness hat was brewing in the price of the coin.
Crypto analyst Kledji Cuni revealed in a TradingView post that this breakout remains bearish for the price. According to him, the pattern is still very solid, meaning that the breakout actually marked the beginning of the bearish trend.
As for how the price will move from here, the analyst expects that Near Protocol will continue to fluctuate around its current level of $7.3. However, the downtrend is expected to happen regardless. “The price may spend some time in the same zone before it moves down for an impulsive,” he stated.
Targets for the decline include an initial 8% drop to $6.78. Following this is another expected drop down to the $6 level. Then finally, the analyst expects the downtrend to bottom out around $4.6. If it goes this low, it would mean a total decline of 37% from its current price.
A Reversal In The Cards?
Recent developments in the metrics of Near Protocol lend credence to the crypto analyst’s prediction of an impending decline. For one, the coin is seeing losses in the last month after starting off 2024 on a very strong foot. This is in addition to the notable decline in its daily trading volume.
The Near Protocol daily trading volume has dropped more than 18% in the last day to approximately $246 million. This decline suggests a decline in interest in the altcoin and could be a contributing factor to the decline.
At the time of writing, Near protocol is trending $7.3, with a 0.89% decline in the last day and a 4.28% decline in the last week.
Featured image from U.Today, chart from Tradingview.com
Scott Matherson
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