NEAR Price Drops 5%, Analysts See 225% Upsurge Ahead

• NEAR tests the $1.35 support area again, but experts envision a possible rise to between $10 and $15.
• NEAR’s Total Value Locked (TVL) has fallen to $231M, yet bullish Parabolic SAR indicates a likely recovery and breakout.

NEAR Protocol [NEAR] has declined to $4.55, reflecting a 2.39% drop in the last 24 hours and a 5.51% decrease over the past week. The trading volume for NEAR in the past 24 hours is recorded at $268.8 million, with a market cap of $5.53 billion.

This recent drop comes after a year of underperformance compared to other emerging blockchain platforms.

Despite the decline, crypto analyst Michael van de Poppe stays hopeful regarding NEAR’s future. He anticipates a bounce back that could elevate NEAR’s price to somewhere between $10 and $15, suggesting a potential increase of 225% from its current price.

Source: X

Key support and resistance levels

NEAR has revisited a previous consolidation range, which could indicate a potential upward bounce. The support level is in the range of $1.35 to $1.50, which might serve as a decent entry point if the price keeps declining.

On the resistance front, a level has been identified at $6.25, corresponding with prior price consolidation.

Technical indicators, especially the Parabolic SAR, suggest a recovery might be on the horizon, with bullish sentiment possibly continuing as the indicator shows dots forming beneath the price level. This could support an uptrend if favorable market conditions occur.

TVL declines in NEAR’s ecosystem

Data sourced from DeFi Llama indicates that NEAR’s Total Value Locked (TVL) is currently at $231.93 million, a significant drop from its year-to-date peak of $358 million. This decline illustrates reduced activity within NEAR’s DeFi ecosystem.

Notable dApps such as Burrow, LiNEAR Protocol, Meta Pool Near, and Ref Finance contribute to the overall TVL, though their metrics are underwhelming compared to other layer-1 and layer-2 blockchains.

In comparison, Base Blockchain maintains $2.43 billion in assets, Arbitrum holds $2.34 billion, and Sui has achieved $1.01 billion. This highlights NEAR’s lag in terms of DeFi adoption and asset gathering relative to newer networks.

Potential for consolidation and breakout

A recent report from AMBCrypto pointed out that NEAR might continue its trading within the current consolidation range, given the ongoing bearish sentiment.

Nonetheless, an upswing from the support levels could pave the way for a more extensive recovery. The Parabolic SAR indicator hints at possible bullish momentum as traders appear to be amassing NEAR at existing price levels.

Should this trend maintain, NEAR could remain steady within the consolidation phase and may potentially break out if there is a positive shift in market sentiment.