Near Protocol has had a good year so far in 2024 and has held up quite well despite the many crashes that have rocked the market. However, it appears that the altcoin has exhausted its runway as one crypto analyst believes that the previous breakout is very bearish for the price.
Near-protocol breaks out of wedge pattern
At the beginning of the month of May, Near Protocol price formed a wedge pattern after falling to $5.5 and then recovering slightly. This wedge pattern would keep its price within a tight range for a while. However, in the middle of the month, Near Protocol price broke out of the wedge pattern and started making a move upwards.
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After the breakout, the altcoin’s price recovered by over 15%, pushing the price firmly above $8, but this did not last long. As the Bitcoin price started to recover and the crypto market followed suit, the Near Protocol price also fell. This confirmed that bearish hat was brewing in the coin’s price.
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 this point, the analyst expects Near Protocol to continue hovering around the current $7.3 level. However, the downward trend is expected to happen regardless. “The price can stay in the same zone for some time before falling for a boost,” he said.
Targets for the decline include an initial decline of 8% to $6.78. This will be followed by another expected drop to the $6 level. Finally, the analyst expects the downtrend to reach around $4.6. If the price were to drop that low, it would represent a total drop of 37% from the current price.
A reversal of the cards?
Recent developments in Near Protocol’s metrics lend credence to the crypto analyst’s prediction of an impending decline. First, the coin is seeing losses over the past month after starting 2024 very strongly. This is in addition to the notable decline in daily trading volume.
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Near Protocol’s daily trading volume has fallen by more than 18% over the past day to approximately $246 million. This decline indicates 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, down 0.89% in the past day and down 4.28% in the past week.
Featured image from U.Today, chart from Tradingview.com