NEAR Protocol Drops 11% Amid Bitcoin Volatility
NEAR Protocol (NEAR) has seen a significant decline over the past week, losing 11.38% of its value. In the last 24 hours alone, the altcoin fell by 5.74%, coinciding with high volatility in Bitcoin. On Wednesday, Bitcoin briefly surged to $90.2k before plunging to a local support level of $85.7k, shaking overall market sentiment.
The 5.6% drop in Bitcoin “has reinforced bearish sentiment across altcoins,” according to recent market observations.
Traders initially had some optimism earlier in the week. Futures data from Monday showed a 13.1% increase in Open Interest, from $122M to $138M, alongside a rise in spot buying volume. The Futures funding rate also reflected short-term bullish sentiment, but this momentum was not sustained as NEAR continued to decline.
Long-Term Range Break Signals Further Weakness
NEAR has been trading in a long-term range from $1.82 to $3.38 since March. By the second week of December, NEAR closed a weekly session at $1.59, below both the $1.82 range low and the long-term support at $1.72.
Technical indicators reinforced this bearish view. The On-Balance Volume (OBV) highlighted steady sell volume, while the Relative Strength Index (RSI) tracked downward momentum. Both daily and weekly charts show that sellers have been dominant since November. NEAR briefly retested $1.82 as resistance, but bulls were unable to reclaim this level, leading to further decline.
Short-Term Outlook and Key Levels
Based on current data, a bullish reversal appears unlikely. NEAR’s trend and recent volatility suggest further pressure toward the $0.97 long-term support.
Analysts note that “a move back above $1.82 would be necessary to shift the bias toward bullish momentum.”
