NEAR Protocol (NEAR) is showing cautious recovery signals as market participants monitor short-term strength around $1.12. Data from CoinMarketCap shows that NEAR rose about 3.47% in the last 24 hours, while weekly performance stayed positive at nearly 6%. The trading volume rose to $216.12 million, a 10.56% increase.
Source: CoinMarketCap
On February 28, a social technical expert, Butterfly, observed that NEAR Protocol was testing the lower boundary of a downward channel on the 3-day chart, an area where short-term buying interest may begin to emerge.
The price of NEAR has been declining in a visible channel for several months. This indicates that every rally is lower than the previous one, and the drops only make new lows.
The selling pressure has dominated the price actions around the resistance levels. The lower edge of the channel has sometimes served as temporary support, causing small reversals when buyers appear.
Channel Structure Keeps Traders Watching Liquidity Zones
Technical charts show that NEAR is trading within a visible downtrend channel. All attempts to move the price towards the top of the channel are countered by selling pressure, thus validating the bearish arrangement.
The middle line of the downtrend channel is currently behaving as a middle resistance line. If there is stronger bullish momentum, the price must first break back above this region before challenging the stronger selling pressures near the top of the channel.
Source: X
Volume increases near the local lows, which could be a sign that some investors are entering at lower prices. However, market momentum still indicates a bearish configuration until a breakout occurs.
The most important support level is at $2.25. This area has been a point where buyers have entered in the past and triggered attempts to reverse in previous downtrends.
Also Read: NEAR Protocol (NEAR) Eyes $2.04 Target if Bulls Reclaim Key Moving Averages
NEAR Eyes Potential Rally if Channel Breach Occurs
Some of the posts, such as those from Whales Crypto Trading, indicate that a possible breakout from the descending channel could help NEAR rally further.
Some of the optimistic charts also indicate that there could be a recovery in the future speculative cycles. For a genuine change in the trend, NEAR needs to close above the upper boundary of the channel and hold above it with strong volumes.
Source: X
If so, momentum traders may also join the bandwagon and drive the price to the next resistance levels. On the flip side, a break below the $2.25 support level may lead to further selling. Currently, the $2.25-$2.70 range is the most crucial area where the battle between buyers and sellers is taking place.
Also Read: Near Protocol (NEAR) Price Struggles at $1 Support, Potential Move to $1.40