The Near Protocol token continues to endure a robust bear market, having plummeted nearly 50% from its peak this year.
On October 24, Near (NEAR) was priced at $4.62, as Bitcoin (BTC) and most alternative cryptocurrencies faced ongoing pressure.
Nonetheless, Michael van de Poppe, a well-known crypto analyst with over 700,000 followers on X, forecasts that it is poised for a rebound, potentially reaching between $10 and $15. Should it ascend to the higher end of this prediction, this would signify a 225% increase from its current price.
Near Protocol, which operates as a layer-1 blockchain network utilizing sharding technology for enhanced performance, has faced challenges this year, falling short compared to other emerging networks.
According to data from DeFi Llama, its total value locked (TVL) in the DeFi sector is currently at $231 million, down from a year-to-date high of $323 million. The leading dApps within its ecosystem include Burrow, LiNEAR Protocol, Meta Pool Near, and Ref Finance.
Near’s TVL significantly lags behind other newer layer-1 and layer-2 networks. For instance, the Base Blockchain, launched in 2023 by Coinbase, has accumulated $2.43 billion in assets. Similarly, Sui boasts $1.01 billion, while Arbitrum has $2.34 billion locked in.
Additionally, Near Protocol holds a minor market share in the Decentralized Exchange domain. The DEX networks within its ecosystem facilitated transactions totaling $26.3 million, making it less significant than platforms like Mint, Injective, and Blast.
This performance can be partly attributed to the absence of a meme coin ecosystem within Near Protocol, which has propelled Solana (SOL) to emerge as the leading DEX blockchain this year.
On a positive note, Near consistently processes a high volume of transactions weekly. Data from Dune Analytics reveals that it handled 49.2 million transactions within the past week, while the count of weekly active addresses surged by 11% to 11.55 million.
Near token is approaching a critical level
The daily chart indicates that the Near Protocol token has been consolidating lately. It has formed a symmetrical triangle pattern that is nearing its confluence point. This triangle has developed during an upward trend, suggesting it may represent a bullish pennant chart pattern. A pennant is a widely recognized continuation signal.
NEAR has also established an inverse head and shoulders pattern, often indicative of potential upward movement. For this to materialize, Near must surpass the 50% Fibonacci retracement level at $5.012 and the 200-day moving average at $4.88.
