NEAR Price Breached Trendline Support: Will It Drag Toward $5?

• In the overnight session, the Near Protocol price dragged below its crucial support zone of $7.
• The technicals are guiding a possible correction ahead.

The Near Protocol (NEAR) price faced a sudden selloff and breached yesterday’s upward trendline support mark of $7. Impacted by the higher-than-expected U.S. jobs data, the token faced volatility and noted a selloff in the last session.

However, the NEAR price has taken support on the 100-day EMA mark, and buyers are trying to resist the selloff.

In the past few weeks, the NEAR price looked stable around the 20-day EMA mark. A decline in the trading volume was witnessed, which might have triggered profit booking at the highs.

At press time, the Near Protocol price traded at $6.72 with an intraday drop of 9.36%, reflecting neutrality on the charts. It has a monthly return ratio of -1.90% and 372.30% yearly, reflecting a short-term bearish trend.

The pair of NEAR/BTC is at 0.0000968 BTC, and the market cap is $4.08 Billion. Analysts are neutral and suggest that the NEAR price may lose gains and will retest the $6 mark ahead.

Could NEAR Initiate a Recovery or Continue to Lose Gains?

The ongoing price action is directing uncertainty and fear among the investors as the token drags below the trendline support zone, which is a sign of caution ahead.

If the token retained gains and jumped above the $7 mark, the selloff would be marked fake, and further bullish continuation may be seen.

Conversely, if the token continues to drag gains and breach the $6 mark, it will favor the bear army, and further correction may be seen ahead.

Source: Santiment

The concern is that the overnight selloff happened with a spike in trading volume of over 187%, which signals the entrance of bears in the battle, which may hunt the buyers at the top.

The Relative Strength Index (RSI) curve guides a negative crossover and dips below the midline region on the charts.

Similarly, the MACD indicator began to plot red bars on the histogram and revealed the dilemma among the investors.

Until the NEAR price does not cross the $7.20 mark, the sell-on-bounce structure remains intact, and possible lower low swings can be seen ahead.

Price Volatility and Weighted Sentiment Insights 

Despite the notable dip of over 9% intraday, the weighted sentiment data still looks strong and leaped over 280% to the 1.799 mark, guiding positive sentiment among the investors.

Source: Santiment

However, the price volatility curve remained flat and leaped over 3% to 0.01 mark, signifying the neutral price action.

@AltstreetsBets, in his tweet, mentioned that NEAR price might uplift gains and will go higher, as the upcoming bullish wave has yet to be triggered.

$NEAR, next wave higher incoming. pic.twitter.com/XLHVGg9M1D

— ᴀʟᴛꜱᴛʀᴇᴇᴛ ʙᴇᴛꜱ (@AltstreetBet) June 5, 2024

Source: X

Another tweet from @GhostMMXM reveals that NEAR saw a butterfly pattern, and the correction wave may stretch toward $6.10, which is the strong support zone.

$NEAR pic.twitter.com/ZZiaTL6JAb

— GhostMMXM (@GhostMMXM) June 4, 2024

Source: X

NEAR Witnessed Drop in Popularity 

Followed by the price drop, the social dominance data witnessed a single-day fall of over 435% to 0.076%, witnessing a decline in user engagement on the media platforms.

Source: Santiment

While the Twitter followers data remained flat, noting around 15 signifies a neutral outlook.

Development Activity and Futures OI Data Insights

The development activity data showed a consistent fall for weeks, dragging to the 168 mark. A decline of over 22% was observed in the past two weeks, implying a negative outlook.

Source: Santiment

Notably, the futures OI activity reveals a sharp, long unwinding activity, and an intraday drop of over 21.30% to $227.11 Million in the open interest was noted.

The immediate support levels for the NEAR price are $6.20 and $5.70, whereas the key upside hurdle is around $7.20, followed by $7.80

Conclusion

The Near Protocol (NEAR) price may witness volatile moves and drag over 10% intraday, reflecting the selloff in the last hours. Meanwhile, this sudden selloff trapped bulls, and the token may retest the $6 mark soon.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.