NEAR Protocol's NEAR token saw a notable 2.62% surge in price over the past 24 hours, rising to $1.20 at the time of writing. This price increase comes after a period of declines for NEAR, with the token dropping 15% over the past month. However, the recent upwards momentum indicates NEAR may be bottoming out from its downtrend.
In this technical analysis, we'll examine NEAR's latest market data to uncover insights for traders. We'll analyze the key metrics around market capitalization, trading volume, and price performance over different timeframes. From hourly to monthly percentages, we'll see how NEAR has been trending and what it could mean for future price action.
Summarizing the Key NEAR Metrics
First, looking at the big picture, NEAR currently has a market capitalization of $1.13 billion. This positions NEAR as a mid-cap cryptocurrency, although it was once in the top 30 by market cap in late 2021.
Over the past 24 hours, NEAR has seen $48.47 million worth of trading volume. Volume is down from its peaks in 2021 but in line with averages over recent months. This level of volume shows there is still decent interest in trading NEAR.
In terms of price, NEAR is down 46.16% over the past 6 months, underperforming Bitcoin and most major altcoins. However, the token has seen some bullish divergences on shorter timeframes.
NEAR's Price Performance: The Bullish and Bearish Signals
Analyzing NEAR's price performance shows a mix of bullish and bearish signals.
On the bearish side, NEAR remains in a clear downtrend over the past 6 months. The 50%+ drawdown indicates NEAR was overbought during its 2021 rally above $20.
Zooming into the one-month view, NEAR is still down 15%. However, the token has found support near the $1 level and defended this psychologically important price over the past two weeks. This could indicate a bottom is in place.
On the bullish side, NEAR has posted higher lows over the past week, signaling bullish divergence on the daily chart. This momentum was confirmed with today's 2.62% surge. NEAR is also seeing bullish divergence on intraday timeframes, with NEAR rising 0.82% over the past hour despite weakness in the overall crypto market.
The Path Ahead: NEAR Likely Rangebound but Upside Possible
Given the conflicting signals, NEAR may remain rangebound between $1 and $1.40 in the near term. This range has provided both support and resistance over the past few months.
However, if bullish momentum continues, NEAR could make a run toward its next resistance around $1.75. Holding above the psychologically important $1 level is key for the bull thesis.
On the downside, if $1 fails to hold as support, NEAR may revisit 2022 lows around $0.80. This would indicate the recent bounce was only a dead cat bounce within a broader downtrend.
Overall, while NEAR remains in a long-term downtrend, its recent bullish divergences on the daily and hourly charts are promising. NEAR may continue to range trade for now, but an upside breakout toward $2 appears possible over the next 3-6 months if momentum improves.
Can NEAR Reclaim its All-Time Highs This Year?
NEAR Protocol surged to an all-time high above $20 in early 2022, fueled by hype around layer-1 altcoins. However, NEAR has retraced over 90% since those highs as part of the broader crypto bear market.
Given the extent of NEAR's drawdown, it is unlikely the token will revisit its record highs in 2023. NEAR would likely need to gain over 15x from current prices to make new highs this year.
Instead, a more reasonable upside target for NEAR this year would be the $5-10 range. This would require a roughly 5-10x gain from current prices.
For NEAR to rally back to $10 in 2023, a few key drivers would need to emerge:
- Renewed retail and institutional interest in layer-1 altcoins as crypto sentiment improves
- expanding ecosystem activity and TVL on Near Protocol itself
- rising NFT trading volume and blockchain usage metrics
- major protocol upgrades or partnerships that boost visibility
While unlikely, parabolic rallies are still possible in crypto. If the stars align for NEAR, a rally back to $10+ cannot be ruled out entirely. However, NEAR reclaiming prior highs appears more probable in 2024 or beyond.
Is Now a Good Time to Invest in NEAR Protocol?
With NEAR trading 90% below its all-time high, many investors wonder whether now is a good time to invest in the protocol. Here are some key factors to consider:
On the positive side, NEAR appears oversold given the extent of its drawdown. Buying NEAR around $1 could offer strong upside potential if bullish momentum returns. NEAR's recent defense of the $1 level also indicates that strong holder support exists at current prices.
However, risks remain. The macro environment is still uncertain, and further crypto downturns could drive NEAR lower. NEAR also faces rising competition from alternative layer-1s that have gained adoption over the past year.
Overall, dollar cost averaging into a NEAR position around current prices could be a reasonable move for long-term investors. NEAR still has promising technology and an opportunity to gain share in the scaling solutions niche. But only risk capital should be invested given the potential for further volatility ahead.
What Other Altcoins Could Outperform NEAR in 2023?
While NEAR has potential upside from its current lows, other altcoins may be better positioned to outperform NEAR this year if crypto markets rebound. Some alternatives to consider include:
- Ethereum - As the second largest crypto, ETH could strongly benefit from a bull run. Upcoming upgrades like Shanghai also boost ETH's long-term value proposition.
- Solana - Despite recent struggles, SOL's focus on speed and scalability remains advantageous. Its developer community also gives SOL an edge.
- Polygon - MATIC has become a top scaling solution for Ethereum. Its interoperability focus and rising adoption signal upside potential.
- Chainlink - LINK is a leading oracle provider with strong institutional use. Its pivotal role in DeFi and crypto could fuel outperformance.
Of course, NEAR still warrants a spot in well-diversified crypto portfolios. But traders looking for altcoins with the most upside potential may want to investigate ETH, SOL, MATIC, and LINK as top alternatives for 2023.
In summary, NEAR Protocol shows a mix of bullish and bearish signals following its 2.62% price surge. While NEAR remains in a long-term downtrend, its stabilization near $1 and bullish divergences point to a potential bottom.
NEAR will likely trade rangebound between $1-$1.40 in the near term. But a rally back toward the $2 level appears achievable in 2023 if momentum continues improving. Long-term holders could consider accumulating NEAR at current prices, but significant risks remain amid the uncertain macro backdrop.