NEAR Price Stabilization Indicates Potential Breakout, Analysts Say

• NEAR Protocol’s network intents are expanding by triple digits each month.
• NEAR shows consolidation at current levels, signaling potential accumulation.
• A breakout above key resistance could push NEAR toward previous highs.

NEAR Protocol’s price continues to trade within a multi-week range despite significant expansion in network intents. Michaël van de Poppe, a prominent crypto analyst, highlighted the divergence between increasing network usage and the token’s price performance. 

This divergence often indicates that a major price movement could be on the horizon. Van de Poppe noted that NEAR’s network intents are growing at a triple-digit rate each month, which signifies rising adoption and usage of the protocol.

Technical Outlook: A Potential Breakout for NEAR

While NEAR’s price has been fluctuating within a narrow range, Van de Poppe pointed out that the asset is showing early signs of stabilization. The prolonged price decline seems to have reached its bottom, with a consolidation phase currently in progress. 

According to the analyst, if the price breaks above the 20-Day Moving Average (MA), it would be the first sign that the market’s momentum could be shifting in NEAR’s favour.

A breakout above the 20-Day MA would not only represent a shift in short-term momentum but also place NEAR back into its broader trading range. This could potentially pave the way for the price to revisit its previous highs, creating more optimism for investors and traders alike.

NEAR Faces Key Resistance Areas

NEAR still faces significant resistance at higher levels. Analysts emphasize that if the price fails to reclaim the key resistance area, it may continue to experience price compression. 

Van de Poppe indicated that this could occur until buyers accumulate enough strength to challenge the resistance once again.

Technical indicators show that a sharp downward trend dominated NEAR’s price action in October and November. However, recent price flattening and tests of lower support levels suggest that the market may be nearing a pivotal point. 

The protocol continues to carry out smart contracts, decentralized applications (dApps), and decentralized finance (DeFi) services, which are central to its long-term utility case. The recent benchmark results, showing NEAR reaching over 1 million transactions per second (TPS), further solidify its position as a scalable platform in the DeFi space. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.