Near Protocol (NEAR) Struggles to Sustain Above the $5 Mark, Anticipates a Short-Term Pullback

Near Protocol (NEAR) experienced a rejection at the 50-day EMA mark and witnessed a decline this week. However, the possibility of pullback is still

Near Protocol (CRYPTO: NEAR) token price experienced a slight dip this week, encountering resistance at the 50-day EMA. The token encountered selling pressure following a five-day losing streak, slipping to the 20-day EMA crucial support.

Beginning the week on a positive note, buyers aimed to breach the $5 mark. However, due to the lack of investor interest, a five-day losing streak occurred. The token slipped to the 20 day EMA crucial support under strong bearish pressure.

From the $5 mark, sellers pushed the token and added fresh short positions, putting pressure on the bulls, which resulted in a bearish reversal.

Highlighting the technical analysis, the Near token price on the daily chart displayed a series of lower lows as it continued to drain gains within the falling channel. During the market recovery, the token managed to pull back from the demand zone of $3.

gráfico de volume de preço NEAR Fonte: Santiment

The buyers struggled to hold their own as the bearish pressure mounted. It formed its base around the $3 mark and bounced back from there. Trading within a falling channel, the token continued to display lower low swings and delivered a correction from the top of $7.

Slipping over 30% in the last two months, the token concluded its correction and may encounter a possible trend reversal soon. In a recent tweet by @CJ, the Near token price established strong support around $4, hinting at an upcoming upward movement.

$NEAR Started building a position on NEAR at the $4 mark and TP'd some into the D1 EMA 200. I'm now of the mind that this is forming a larger bottom where we chop around not too far away from Range Low for a couple of weeks, before putting in a reclaim and sending. Think the… pic.twitter.com/2tP8IB3WQ9

— CJ (@CJ) March 14, 2023

Tweet by @CJ Source:X

A daily close above the $5.50 mark would indicate significant bullish momentum and could open up the possibility of moving toward the $7 mark in the short term.

Currently, NEAR was trading at $4.39 with a decline of over 1.29%, indicating a slight dip in the last 24 hours. Notably, its trading volume slipped by 11% along with the price decline, suggesting lower seller optimism.

The Daily RSI line retraced toward the midline from the overbought zone, indicating a rejection from the peak. It meant that selling pressure was significant, leading to the price drop.

Weighted Sentiment and Price Volatility Data Outlook

Despite the substantial price drop, the weighted sentiment data remained in the close to the midline region, notated at -0.157, indicating neutral investor sentiment.

Weighted Sentiment Data Source: Santiment

However, the price volatility curve remained lower along with the price decline amid weak selling pressure.

Total Value Locked (TVL) Rises

TVL Data Source: DeFiLlama

The token has been on a recovery path since the beginning of this month. The rise in TVL to $212.55 Million indicated investor confidence.

If the token finds support around the 20-day EMA, it may regain momentum and move toward the $5 mark, followed by $5.70 in the short term. However, the immediate support zone was around $4, followed by $3.60

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