In recent days, the cryptocurrency landscape has cast fresh light on NEAR (the native token of the NEAR Protocol network), unveiling several encouraging signals that suggest the project may be on the verge of a rebound. Here’s a detailed look at the underlying data, technical posture, and risk factors shaping NEAR’s potential recovery.
On-Chain and Derivatives Signals Are Improving
According to analytics from Arthemis Terminal, NEAR’s Total Value Locked (TVL) has risen significantly — from roughly USD 105.5 million on 29 October to USD 182.1 million as of the latest measure. This increase reflects heightened ecosystem usage and shows more users and value being deployed on protocols built atop NEAR.
On the derivatives side, data from CryptoQuant indicates larger inflows by whales and notably that the funding rate (from Coinglass) has turned positive — around +0.0079% — meaning long positions are paying shorts. This tends to be a bullish sentiment indicator.
Together, these two sets of data suggest that NEAR is attracting renewed attention from large players and that confidence may be gradually restoring.
Technical View: Key Support Levels & Potential Upside
NEAR recently broke out of a decreasing wedge formation and surged more than 11% within two days. However, it pulled back roughly 17% by mid-week, testing its 200-day EMA (~USD 2.53). At the time of writing, it trades near USD 2.57.
Important support zones to watch:
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~USD 2.53 (the 200-day EMA)
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~USD 2.35 (weekly support)
If these hold, the next target could be the previous high near USD 3.34. But if the USD 2.35 level fails, a drop toward about USD 1.90 becomes plausible.
Additional technical indicators reinforce the medium-term bullish case: the Relative Strength Index (RSI) sits around 53 (above the neutral 50 line) and a bullish Moving Average Convergence Divergence (MACD) crossover has been registered.
Why This Matters: Ecosystem Strength + Sentiment Turning
The increase in TVL signals real usage growth in the NEAR ecosystem, not just speculative trading. More value locked means more trust in the chain’s utility. Meanwhile, positive data from derivatives shows that more traders expect price strength ahead, rather than deep declines. Together, this dual confirmation (on-chain + derivatives) strengthens the case for a recovery scenario.
Given how sentiment and network metrics often lead price, this could mean that NEAR is in a favorable setup: the proverbial “spring before the jump.”
Risks & What Could Break the Setup
Every bullish scenario carries caveats. For NEAR:
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If support at USD 2.35 is lost, a deeper correction toward ~USD 1.90 or lower is conceivable.
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Macro events (crypto regulatory concerns, broad-market drawdowns) could derail the rebound even if internal metrics stay supportive.
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Metrics can stay positive yet price may move sideways — a “false breakout” remains possible.
Thus, while the conditions are improving, they are not guarantees of large upside.
Summary & Outlook
In summary, NEAR shows multiple signs of potential recovery: growing ecosystem usage (TVL), positive derivatives metrics, and technically stable support levels. If the key supports hold, the path toward USD 3.34 looks reachable in the medium term. However, market conditions remain volatile and risk remains elevated if supports fail.
For investors or observers: this is a moment to monitor whether NEAR holds the USD 2.35–2.53 zone and whether ecosystem momentum continues. A sustained break below would undermine the bullish case; a rebound with solid volume would strengthen it.
Disclaimer: This article is for informational purposes only and should not be taken as financial or investment advice. Crypto assets are highly volatile and risky; readers should conduct their own research and consult professionals as needed.
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