NEAR Protocol Price Forecast: ETF flows point to softer demand as correction takes shape

• 5% Thursday drop in NEAR Protocol wipes out most of the previous day's 6% rally.
• Buying pressure appears weaker as NEAR-focused ETF flows turn mixed this week.
• Fading upward momentum leaves NEAR's technical outlook pointing to a correction within the wider uptrend.

NEAR Protocol (NEAR) has fallen 5% at press time on Thursday. Trading below $5.00, it has surrendered most of the previous day's 6% rebound. After three consecutive weeks of inflows, mixed flows into the NEAR-focused Exchange-Traded Fund (ETF) this week indicate softer buying pressure. The technical picture remains mixed, with waning upward momentum bringing a corrective phase within the broader uptrend.

Institutional demand loses strength

Mixed flows into Bitwise’s NEAR-focused ETF (NRR) this week point to wavering institutional demand. According to SoSoValue data, Wednesday brought $830,700 in inflows to NRR. This followed its first-ever day of selling on Tuesday, when outflows totalled $2.54 million.

Following three consecutive weeks of inflows, the ETF has attracted $3.71 million so far this week, including Monday's $5.42 million inflow. Ending the week in positive territory could temper concerns that institutional investors are withdrawing.

Among retail traders, NEAR futures Open Interest (OI) has risen from $1.47 billion on Monday to $1.67 billion on Thursday, pointing to a build-up in positions this week. A sustained increase in OI typically signals renewed trader interest in NEAR.

Technical outlook: NEAR builds momentum during pullback

At $4.99 at press time on Thursday, NEAR retains a neutral stance with some upside constraints. The four-hour chart places the price beneath the 50-period Exponential Moving Average (EMA) of $5.03, though comfortably above the 200-period EMA of $4.61. This positioning points to consolidation within the wider uptrend.

On the downside, an ascending support trendline near $4.70 supports the bullish case at lower levels. The 200-period EMA and the 25 September low of $4.44 provide further reinforcement. A confirmed break beneath $4.44 could invalidate this near-term support cluster and expose NEAR to a sharper fall towards the $3.91 support level established by the 19 September high.

On the four-hour chart, the Moving Average Convergence Divergence (MACD) and its signal line are at risk of forming a bearish crossover. Meanwhile, the Relative Strength Index (RSI) stands around 47, beneath the midline, indicating that bullish momentum is weakening.

A return to an upward trend requires NEAR to clear resistance at $5.44, the 15 October high. That barrier limited Wednesday's gains, leading to a 5% decline so far today. A break above it could pave the way towards the 12 October high of $6.00.

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