NEAR Protocol Price Forecast: Could mounting bearish signals push NEAR lower?

• After testing a key support level, NEAR Protocol remains steady around $3.61 on Tuesday.
• Following withdrawals of more than $4 million last week, institutional investors paused on Monday as net flows stood at zero.
• Retail demand appears subdued, with the Coinbase premium persistently negative and NEAR futures recording net outflows.

Selling pressure continues to weigh on AI token NEAR Protocol (NEAR), although it remains resilient above $3.50 on Tuesday after rebounding from $3.40 support the previous day. Institutional interest is subdued, while retail demand continues to weaken, accompanied by a negative Coinbase premium and outflows from NEAR futures. With several resistance levels capping the price, NEAR’s technical outlook remains bearish.

Are NEAR ETF withdrawals and futures selling signalling weaker demand?

Pressure on NEAR ETFs persists following two weeks of net withdrawals. According to SoSoValue, Monday recorded zero net flows, following outflows of $4.38 million and $3.43 million over the preceding two weeks. Sustained outflows typically point to institutional withdrawals and weaker confidence in the asset.

Weakening demand is also visible among retail investors. On Tuesday, NEAR Open Interest (OI) stood at 230 million NEAR, compared with 318 million NEAR on 22 October, according to CoinGlass. The decline indicates a reduction in the notional value of active contracts, suggesting risk-off sentiment consistent with increasing net outflows from the futures market.

While outflows from NEAR futures represented 17% of daily volume, the spot market absorbed supply, recording inflows equivalent to nearly 10% of daily volume. 

US demand for the NEAR token is also subdued. Its negative Coinbase premium of -0.097% means the token trades at a discount on the exchange, pointing to limited interest among US investors. Those watching for a rebound could view a positive surge in the Coinbase premium as a potential signal of a bullish trend reversal, as seen on 4 September and during several smaller spikes in late September.

Technical outlook: Will NEAR hold support at $3.40?

The near-term bias remains bearish as NEAR Protocol changes hands at $3.6130 at the time of writing on Tuesday. On the four-hour chart, the token remains below both the 50-period Exponential Moving Average (EMA) of $3.8332 and the 200-period EMA of $4.2614, reinforcing the downtrend.

A falling wedge defines NEAR’s technical structure, bounded by a descending trendline at $3.7981 and a support trendline near $3.4000. Reinforcing the latter is immediate horizontal support around $3.4030. If a break below this zone is confirmed, the token would face the prospect of a deeper correction, with subsequent support at $2.9780 and $2.7280.

The momentum picture remains mixed. The Moving Average Convergence Divergence (MACD) line continues to sit below, while the Relative Strength Index (RSI) is near 43, with both suggesting modest downward momentum.

On the upside, the first resistance lies around $3.7981, where a break above the downtrend line would occur, with the 50-EMA at $3.8332 close behind. The next horizontal hurdle is $3.9160, followed by the 200-EMA near $4.2614.

(The technical analysis of this story was written with the help of an AI tool. Know more.)