NEAR Protocol's native token NEAR has declined 7.81% over the past 24 hours to $1.33. Despite the short-term pullback, NEAR still shows some underlying technical strengths.

Trading Volume Remains Healthy

Despite the 7.81% single-day drop, NEAR's 24-hour trading volume reached $51.66 million. This level of liquidity indicates there is still solid interest in trading NEAR across exchanges.

Market Dominance Intact

With a market capitalization of $1.27 billion, NEAR remains the 37th largest cryptocurrency. Its market dominance sits around 0.10%, unchanged over the past month. This shows NEAR maintaining relative strength.

Monitoring Potential Support at $1.20

Technically, NEAR has found support around $1.20 multiple times over the past couple months. Now with this pullback, it will be important to see if $1.20 continues acting as support. If so, this could signal a bottom.

Longer Term Technicals Remain Bearish

Despite potential support at $1.20, NEAR remains in a broader downtrend, having declined 47.93% over the past 6 months. The longer term technical outlook remains bearish, even if $1.20 prompts a bounce.

Bottom Line

While NEAR's price has dipped 7.81% in the past day, key indicators like trading volume and market dominance point to continued technical strength. However, the longer-term downtrend remains intact, despite potential support at $1.20.

Should You Buy the Dip on NEAR Protocol?

With NEAR down nearly 8% in the past 24 hours, some investors may view this as an opportunity to buy the dip. Dollar cost averaging can make sense long-term. However, considering the broader downtrend, traders may want to wait for a trend reversal.

If the $1.20 support level holds strong and NEAR forms a clear higher low, that would signal the downtrend is potentially ending. Additionally, the RSI hitting oversold levels could foreshadow a bottom. Until bullish signs confirm, caution may be prudent.

Is NEAR Protocol a Good Long-Term Investment?

For investors with a multi-year time horizon, NEAR Protocol remains one of the most promising layer-1 blockchain projects. As a scalable base layer focused on usability, NEAR has disruptive potential if it can gain further adoption.

Despite its recent struggles, NEAR still ranks among the top 40 cryptocurrencies by market cap. It has strong developer support and continues gaining partnerships. With real-world utility, NEAR has considerable long-term investment potential, especially at lower price levels.