NEAR Protocol (NEAR) Technical Breakdown: Is a Drop to $2.35 Inevitable?

NEAR Protocol's price action hits a snag, with technical charts painting a bearish picture. Analysts are eyeing a potential slide toward a key support level.

The Technical Setup

The current market structure suggests a breakdown. Key moving averages have flipped from support to resistance, and momentum indicators are trending south. This isn't just a minor pullback—it's a shift in the short-term narrative. The pattern points toward a test of the $2.35 zone, a level that could either act as a springboard or a trapdoor.

Market Sentiment vs. On-Chain Reality

While the social feeds buzz with long-term optimism, the on-chain data tells a more immediate story. Network activity remains robust, but selling pressure from short-term holders is mounting. It's the classic crypto tug-of-war: fundamental strength versus technical weakness. Remember, in traditional finance, they'd call this 'price discovery'—in crypto, we call it Tuesday.

The Path Forward

Watch the volume. A drop toward the target on low volume could signal exhaustion and a potential reversal. High-volume capitulation, however, opens the door for a deeper correction. The next few candles will be critical. Either NEAR finds its footing and proves the charts wrong, or it validates the technical forecast and reminds everyone that in this market, sometimes the most bullish thing you can do is survive the dip.

Falling Wedge Setup on the 4-Hour Chart

NEAR is trading inside a large falling wedge on the 4-hour chart, forming consistent lower highs and lower lows while price compresses near the apex. This pattern traditionally signals a bullish reversal when momentum strengthens. The price currently hovers around $1.50–$1.52, indicating gradual stabilization while defending short-term support at around $1.48.

A confirmed breakout above the wedge resistance line and close above the $1.60 levels may trigger the continuation MOVE higher. The initial levels for the bullish response may be seen at $1.70, $1.90, while $2.10 is a significant level acting as resistance. A likely target level following the breakout from the forming wedge may be cited at $2.25-$2.35, establishing a 45% potential gain.

Weakening bullish momentum could see a test of further support levels at $1.48 and then $1.40, and eventually a structural support level of $1.32, where a trend test takes place below it. There is presently less volatility and consolidating price action, indicating a looming breakout point. NEAR maintains a positive bias while supported by the wedge support area.

Indicators Reflect Bearish Momentum

RSI on the NEAR daily chart remains around 35, which remains below the middle level of 50. A level this low indicates strong sell pressure, which means that buying support remains weak. A lack of renewed advances above the middle line shows dominance by the sellers.

MACD analysis reveals that the line is placed below the signal line. Also, the histogram is held close to the negative zone. It is noted that red candle wicks are constantly shrinking in size. However, the moment will come when a strong crossover will be formed. This will make the indicator of the token turn towards a meaningful recovery.