Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Near Protocol (NEAR) is back in the correction mode after a big rally that briefly pushed its price toward $6.00. It has lost a large part of its recent gains, and the selling is threatening to erase even more of the bullish momentum built up through September and October.
On the daily NEAR/USDT chart on Binance, the token is trading around $3.77, about 37% below its recent peak near $6.00. The decline hasn't reached 50% yet, but it's big enough that the earlier bullish sentiment is gone completely.
NEAR loses key support
The latest drop has pushed NEAR below several short-term moving averages, which weakens its market positioning substantially.
NEAR spent most of October between $4.80 and $5.40, then started making lower highs, which is a strong sign reflecting that buyers were losing strength. The break below $4.40 sped up the selling and brought the price down to where it is now.
The $3.60 to $3.70 zone is now the important support, backed by the rising longer-term moving average. If it breaks cleanly, NEAR could fall toward $3.20 and possibly $3.00.
The $4.20 to $4.40 range is the closest resistance. NEAR needs to reclaim it before anyone can expect a proper recovery.
Momentum points to more weakness
The Relative Strength Index (RSI) has dropped toward the lower end of its neutral range. Bullish momentum is fading, but the market hasn't yet reached the oversold state on indicators like RSI.
Volume is what might be the key to track here. The recent selling is still well below the volumes of September's breakout, which is a good sign, but if the selling continues, it could push the price down harder.
NEAR is still above its longer-term moving average near $3.00, so the bigger recovery structure hasn't been fully broken.
Still, if buyers don't defend the $3.60 area and take back the nearby resistance, this October rally could turn into a long correction instead of a short pullback.