The NEAR Protocol price has experienced a significant pullback after a period of consolidation between $5 and $5.50. Following a rapid climb in September, the token struggled to maintain momentum at the upper end of the range, leading to a pullback to $4.65. Despite the price retracement, network activity remains high, indicating a bullish trend.
NEAR Price Tests Crucial Support After Rejection
The daily chart reveals that NEAR went through a consolidation phase after a strong rally from below $2 in August to above $5 in September. The price repeatedly tested the $5 to $5.50 range but failed to establish a sustained move above it. The recent decline is notable because it follows an extended consolidation period rather than an immediate rally.
During the recent uptrend, trading activity increased, and open interest rose to around $50 million before dropping to $38 million. This indicates that some leverage from the rally has been reduced. Additionally, the funding rate has decreased, alleviating the risk of an overcrowded long trade. The critical area to monitor now is the $3.60 to $4 range, which previously acted as resistance before the price surged higher.
Rising Network Activity Could Support NEAR Price
Despite the price correction, activity across the NEAR network is on the rise, with daily active users increasing significantly from 110,000 in September to nearly 257,000. This reversal in user levels over the past 90 days provides a more robust foundation for the token.
The increasing network activity, coupled with price holding above major support levels, suggests that the current market weakness could be a temporary setback rather than a full breakdown.
Key Price Levels to Monitor
- $6 to $6.20 – Major resistance
- $5 to $5.50 – Former consolidation zone
- $4.60 to $4.65 – Immediate price area
- $3.60 to $4—Key support and breakout-retest zone
- $3 – Next downside level if support fails
- $6.50 to $7—Upside target after a confirmed recovery
- $8.15—Major higher-timeframe target
NEAR Price Prediction: Can Bulls Reclaim $5?
Following a recent rejection, NEAR’s price is cautiously stabilizing around $4.60. If buyers can push the price back above $5 and potentially reach $5.50, the bullish outlook remains intact. A move beyond $5.50 would reinforce the recovery and shift focus to the $6 to $6.20 resistance zone. Achieving $8 would require a robust recovery, while reclaiming $6.50 to $7 is crucial for sustained bullish momentum.
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