NEAR Protocol [NEAR] has fallen to $4.55, signaling a 2.39% decline in the last 24 hours and a 5.51% drop over the previous week. During this period, NEAR recorded a trading volume of $268.8 million and currently boasts a market cap of $5.53 billion.
This recent decline comes after a year of lackluster performance when compared to emerging blockchain networks.
Despite this setback, crypto analyst Michael van de Poppe holds a positive outlook on NEAR’s future. He envisions a potential recovery that could drive NEAR’s price upwards to the $10 to $15 range, indicating a possible surge of 225% from its current value.
Source: X
Crucial Levels of Support and Resistance
NEAR has revisited a previous consolidation zone, hinting at a potential rebound. The support range is identified between $1.35 and $1.50, presenting itself as a plausible entry point if the price continues to correct.
On the flip side, a resistance barrier is situated at $6.25, aligning with past price stabilization points.
Technical indicators such as the Parabolic SAR suggest a likely recovery phase, with dots forming below the price level. This suggests ongoing bullish sentiment that could uphold the uptrend if market conditions improve.
Decrease in TVL within NEAR’s Ecosystem
Information from DeFi Llama reveals that NEAR’s Total Value Locked (TVL) currently stands at $231.93 million, down from its year-to-date peak of $358 million. This decline mirrors reduced activity within NEAR’s DeFi ecosystem.
Distinguished decentralized applications like Burrow, LiNEAR Protocol, Meta Pool Near, and Ref Finance play a significant role in the network’s TVL, although the figures lag behind other layer-1 and layer-2 blockchains.
For instance, Base Blockchain manages $2.43 billion, Arbitrum holds $2.34 billion, and Sui has accumulated $1.01 billion. This data suggests that NEAR is currently trailing newer networks in terms of DeFi adoption and capital accumulation.
Possibility of Consolidation and Breakout
A recent report from CryptoCrypto speculated that NEAR might expand its trading range within the ongoing consolidation phase due to prevailing bearish sentiment.
Nevertheless, a potential recovery from support levels could pave the way for a more extensive rebound. The Parabolic SAR indicator also hints at potential bullish momentum, indicating that traders are amassing NEAR tokens at current levels.
If this pattern persists, NEAR could sustain its position within the consolidation stage and potentially break out if market sentiment experiences a positive shift.