NEAR Bulls Aim for Key 20-Day MA Reclaim as Usage Soars and Price Stabilizes

As NEAR trades at its lowest level since October 10, both intents and revenue have surged. Bulls are optimistic that reclaiming the 20-Day Moving Average (MA) and breaking out of the current range could signal a major price bottom.

Key Takeaways

NEAR is experiencing increased intent growth at triple-digit rates monthly despite a downtrend in price.
The 20-Day MA serves as a critical indicator for potential price recovery.
A breakout could lead to a return within the broader trading range, possibly reaching previous highs.
Failure to reclaim key support might result in continued price compression.

NEAR tests 20-Day MA as intents surge from October support.

Signs of Stabilization for NEAR Protocol

Analyst Michaël van de Poppe has highlighted that NEAR is showing early signs of healing after a prolonged decline. He pointed out that consolidation at current price levels may indicate a buildup of strength, especially if the price surpasses the 20-Day Moving Average. A move above this average would signal a potential shift in momentum.

Reclaiming short-term resistance would allow NEAR to reenter its broader trading range, with the potential for reaching previous price peaks. Van de Poppe described the present structure as the strongest accumulation cluster since the months of October and November, with buyers actively defending the liquidity zone where earlier price recoveries began.

However, if NEAR fails to reclaim this critical area, it may find itself in a lower demand zone, leading to further price compression, he warned.

Chart analysis shows that NEAR experienced a significant downward trend through October and November, characterized by lower highs and lower lows. Increased trading volume towards the end of this decline has been interpreted by analysts as a possible capitulation event. Recently, price actions have started to stabilize, forming a short-term base and attempting to reclaim levels where earlier declines began.

Technical indicators show repeated touches on a lower band, indicating that this zone has become a vital support level. A sustained movement above the 20-Day Moving Average would represent the first significant momentum shift seen in several weeks.

If NEAR manages to break through key resistance, the broader trading range would reopen, paving the way for a potential climb towards previous highs. Conversely, if the breakout fails, prices may continue to compress until buyers gather enough momentum to challenge resistance once more.

With rising network activity and a tightening market structure, the next breakout attempt will be crucial in determining whether the recent multi-week decline marks a long-term bottom or merely a temporary pause.