Near Protocol has had a good year so far in 2024 and continues to perform quite well despite the numerous crashes that have rocked the market. However, it appears that the altcoin may have exhausted its runway as a cryptocurrency analyst believes its early breakout is very bearish due to its price.

The almost protocol breaks out of the wedge pattern

In early May, the price of Near Protocol formed a wedge, falling to $5.50 and then rebounding slightly. This wedge pattern will keep the price in a narrow range for some time. However, in the middle of the month, the price of Near Protocol broke out of the wedge formation and started moving upwards.

After the breakout, the altcoin’s price rebounded by over 15%, pushing its price well above $8, but that didn’t last long. As the price of Bitcoin began to drop and the cryptocurrency market followed, the price of Near Protocol also dropped. This confirmed the bearish trend in the coin’s price.

Crypto analyst Kledji Cuni revealed in the TradingView post that this breakout remains bearish due to price. According to him, the pattern is still very solid, which means that the breakout has actually started a downtrend.

As for further price development, the analyst expects Near Protocol to continue to hover around the current level of $7.3. However, the downward trend is expected to continue regardless. “The price may stay in the same zone for some time before impulsively falling,” he said.

Downside targets include an initial drop of 8% to $6.78. This will then be followed by another expected decline to $6. Finally, the analyst expects the downtrend to bottom out around $4.6. If it falls that low, it would represent a cumulative decline of 37% from the current price.

A reversal of the cards?

Recent changes in Near Protocol metrics lend credence to crypto analysts’ predictions of an impending decline. First, the coin has been experiencing losses in the last month after starting 2024 in a very robust position. In addition, there is a noticeable decline in the daily trading volume.

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

At the time of writing, Near Protocol is trading at $7.3, down 0.89% in the last day and 4.28% in the last week.

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