Near Protocol has had a good year in 2024 so far and has continued to hold up well despite multiple crashes that have rocked the market. However, it appears that the altcoin may have exhausted its runway, as a crypto analyst believes its previous breakout was too bearish for the price.

Nearby the protocol breaks out of the wedge pattern

At the beginning of May, the price of the nearby protocol formed a wedge pattern after falling to $5.5 and then making a slight recovery. This wedge pattern would keep its price in a narrow range for a while. However, by the middle of the month, the price of the nearby protocol broke out of the wedge pattern and started moving upward.

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After the hack, the altcoin price saw a recovery of over 15% which took its price above $8, but this did not last for long. Once the price of Bitcoin started to decline and the cryptocurrency market followed suit, the price of the nearby protocol also declined. This confirms that a bearish cap was brewing in the currency price.

Cryptocurrency analyst Kledji Kone open TradingView posted that this breakout is still bearish for the price. According to him, the pattern is still very strong, which means that the breakout actually marks the beginning of a downtrend.

As for how the price will move from here, the analyst expects Near Protocol to continue to fluctuate around its current level of $7.3. However, the downside is expected to occur regardless. “The price may spend some time in the same area before moving down impulsively,” he said.

Downside targets include an initial 8% decline to $6.78. This is followed by another expected decline to the $6 level. Finally, the analyst expects the downside to reach around $4.6. If it reaches this low, it would mean a total decline of 37% from its current price.

A coup in the cards?

Recent developments in Near Protocol’s metrics lend credence to cryptocurrency analysts’ predictions of an imminent decline. For example, the currency saw losses last month after starting 2024 very strong. This is in addition to the noticeable decrease in its daily trading volume.

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Near Protocol's daily trading volume fell more than 18% in the last day to approximately $246 million. This decline indicates a decline in interest in the altcoin and could be a contributing factor to the decline.

At the time of writing, the lower protocol is heading to $7.3, with a 0.89% decline in the last day and a 4.28% decline in the past week.

Featured image from U.Today, chart from Tradingview.com