NEAR Protocol (NEAR) can bounce back in the near future - This is the reason

As of the time of writing on Wednesday, NEAR Protocol (NEAR) is testing the important support level at 2.53 USD. If this level is maintained, it is likely that this coin will record a bounce back. Market indicators are supporting the positive scenario: Total Value Locked (TVL) is increasing, whale activity is more dynamic, along with a positive funding rate index — all reflecting an improving investor sentiment, hinting at the possibility that NEAR could surge this week.

On-chain data and derivatives of NEAR show an upward trend

Data from Arthemis Terminal recorded the total value locked (TVL) of NEAR has increased to 182.1 million USD on Wednesday, up from 105.5 million USD on October 29, and continues to rise since then. This increase reflects the level of activity and growing interest in the NEAR Protocol ecosystem, indicating that more users are sending or utilizing assets on NEAR-based protocols.

TVL of NEAR | Source: ArtemisThe aggregated information from CryptoQuant also reinforces the positive outlook, as both the spot and derivatives markets have recorded large trades from whales, revealing the potential for an upcoming price surge.

In the derivatives market, NEAR seems to be ready for a bounce back. Funding rate data from Coinglass shows that the number of traders expecting the price of NEAR to decrease is lower than the number predicting an increase. This indicator turned positive on Sunday and maintained at 0.0079% on Wednesday, reflecting that Long positions are paying fees for Short – a clear sign of bullish sentiment in the market.

Funding rate of NEAR | Source: Coinglass## NEAR Protocol Price Forecast: NEAR may increase if support levels are maintained.

NEAR Protocol has just recorded a strong breakout from a descending wedge pattern on Friday, with an increase of over 11% in the following two days. However, at the beginning of this week, the upward momentum stalled as NEAR plummeted over 17% by Tuesday, testing the 200-day EMA at 2.53 USD. At the time of writing on Wednesday, NEAR had bounced back slightly, trading around 2.57 USD.

Investors looking to accumulate NEAR tokens may consider buying at important support areas, which are 2.35 USD ( weekly support ) and 2.53 USD ( 200-day EMA ). If NEAR finds support at these levels, the upward momentum may continue towards the highest point on September 19, 3.34 USD.

NEAR/USDT Daily Chart | Source: TradingViewOn the daily chart, the Relative Strength Index (RSI) is at 53, above the neutral threshold of 50, indicating that the uptrend is being reinforced. The MACD indicator has also shown a bullish crossover signal since last week and continues to maintain it, suggesting the potential for the uptrend to persist.

On the contrary, if NEAR cannot maintain the weekly support level of 2.35 USD, the price may continue to adjust down to the next support area at 1.90 USD.

SN_Nour