Volatile swings highlight profit-taking as traders eye critical support zones
NEAR Protocol’s price action turned turbulent on Monday, swinging within a $0.12 intraday range before sellers regained control, pushing the token toward a crucial support level near $2.65. The move comes after a multi-day recovery rally that lifted NEAR off its early August lows, fueled by a broader rebound in cryptocurrency markets.
The 4-hour chart shows that NEAR stalled at a key resistance band around $2.75–$2.80, a level previously rejected in late July. The rejection coincided with a spike in sell volume, signaling that short-term traders were locking in gains from the recent rally.
“We’re seeing a classic profit-taking phase after a sharp rebound,” noted BITX market strategist. “Unless NEAR can reclaim $2.80 with strong volume, the risk of a deeper pullback toward $2.40 remains elevated.”
Technical analysis points to a well-defined support zone between $2.40 and $2.45, marked by multiple prior bounce points and high trading activity in early July. Beneath that, the next major support is closer to $2.20, aligning with the base of the July rally channel.
The broader market backdrop remains cautiously optimistic. Recent data shows institutional inflows into digital asset investment products exceeded $570 million last week, with Ethereum leading the market. While NEAR-specific flows were modest, analysts suggest the trend reflects resilience in investor appetite despite ongoing macroeconomic uncertainty.
In the short term, bulls will need to defend current levels to prevent a breakdown that could test the green support band on the chart. A confirmed breakout above $2.80 could open the door for a push toward $3.00, but failure to hold above $2.65 risks accelerating selling pressure.
For now, NEAR’s price consolidation between critical support and resistance underscores the market’s indecision — a balance between optimism over the recovery and caution ahead of potential macro-driven volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.