All about NEAR’s 14% downtick and whether traders should expect more losses
Not all bad news for NEAR just yet.
Key Takeaways
Is there a divergence looming for NEAR?
NEAR’s on-chain activity is heating up, but the short-term price is yet to catch up.
Do bulls or bears hold the upper hand in NEAR’s market?
A 17% share of all L1 active users hinted at rising demand, despite market bears retaining some control.
NEAR Protocol (NEAR) extended its downtrend over the last 24 hours. In fact, the altcoin’s price fell by 14% over this period as market volatility intensified across the broader crypto market.
And yet, despite the aforementioned drop, NEAR‘s on-chain developments do give cause to be optimistic.
Consider this – NEAR Intent crossed a major milestone recently, recording $5 billion in all-time processed volume – A sign that ecosystem activity has been robust, despite the latest market pullback.
NEAR market activity defies bearish price action
The network’s user base is expanding too. For instance, monthly active users across Layer-1 blockchains have risen sharply lately. However, NEAR now accounts for nearly 17% of all L1 active users.
NEAR ranks third among layer 1 tokens, with only Solana and BNB recording higher numbers.
At press time, the NEAR protocol’s network recorded 41.8 million users. BNB chain boasted the lead with 56.5 million users, just ahead of Solana with figures of 45.4 millions users.
The aforementioned growth is a sign of the protocol’s rising adoption at a time when broader market sentiment has turned cautious.
Long-term price structure hints at potential reversal
On the contrary, the token’s short-term price reaction seemed to highlight a clear disconnect. NEAR’s strong on-chain traction has not translated into short-term price action. In fact, sellers seem to still be in dominance.
The steep daily decline could be a sign that traders may be prioritizing risk-off moves rather than fundamentals. Especially as market liquidity thins and volatility spikes.
On the weekly chart, NEAR prices have been tied in consolidation phase since March this year. The altcoin’s price has been fluctuating within the $1.82 and $3.20 price levels for long.
At the time of writing, the same was approaching the $1.82 support zone after the latest bearish run. However, the support level is more likely to stand given the favorable on-chain sentiments.
