top of page

Get auto trading tips and tricks from our experts. Join our newsletter now

Thanks for submitting!

Near Protocol: Bullish Breakout or Bearish Signal? A Potential 37% Downturn

Near Protocol (NEAR) has been a beacon of relative stability in the volatile cryptocurrency market of 2024. While other altcoins have plunged, NEAR has managed to hold its ground. However, a recent price movement has some analysts sounding the alarm, suggesting a potential 37% crash on the horizon.


Wedge Pattern and the Analyst's Call


In early May, NEAR formed a technical chart pattern known as a "wedge." This pattern is characterized by price fluctuations confined within a narrowing range, with trendlines converging towards a point. While breakouts from wedges can signal either bullish or bearish continuations, the specific characteristics of NEAR's breakout have a crypto analyst predicting a significant downturn.


The analyst argues that the way NEAR broke out of the wedge is a bearish indicator. They believe the price may experience a period of consolidation around its current level ($7.30 as of May 31, 2024) before an "impulsive" downward movement. This movement could see the price drop by 8% to $6.78 initially, followed by further declines to $6.00 and a potential bottom around $4.60. If this scenario plays out, NEAR would experience a total decline of 37%.


Metrics Supporting the Downturn Theory


The analyst's prediction finds some support in recent developments surrounding NEAR's market metrics. After a strong start to 2024, NEAR has seen a decline in price over the past month. This price drop coincides with a notable decrease in daily trading volume, suggesting a potential weakening of investor interest.


While NEAR has outperformed many other altcoins, the overall bearish sentiment in the cryptocurrency market could also play a role in its future price movement. A broader market downturn could drag NEAR down even if its project fundamentals remain strong.


Understanding Wedge Patterns and Analyst Predictions


It's important to remember that technical analysis, including wedge patterns, is not an exact science. Past performance is not always indicative of future results. While the analyst's prediction offers a bearish perspective, it's just one voice in a crowded space.


Here are some additional factors to consider:


  • Positive News and Developments: News about partnerships, project developments, or upcoming upgrades could trigger renewed investor interest and push the price upwards.

  • Market Sentiment Shift: A broader shift in market sentiment towards optimism could buoy NEAR's price regardless of the technical indicators.

  • Unreseen Events: Unexpected events, both positive and negative, can significantly imact the cryptocurrency market.


Investor Takeaway: Research and Diversification


The potential for a 37% decline in NEAR price should be a wake-up call for investors. It underscores the inherent volatility of the cryptocurrency market. Investors should conduct thorough research on NEAR's project fundamentals, roadmap, and the broader market outlook before making any investment decisions.

Diversification is also crucial. Spreading investments across various cryptocurrencies and asset classes can help mitigate risk.




Near Protocol's recent breakout from a wedge pattern has sparked debate among analysts. While some see a potential 37% crash on the horizon, others remain cautiously optimistic. Ultimately, the future price movement of NEAR will depend on a combination of technical factors, project developments, and broader market sentiment. Investors should carefully consider all available information before entering or exiting any NEAR positions.


4 views0 comments


bottom of page