NEAR price drops 5%, but analysts predict a 225% surge

• NEAR retests $1.35 support zone, but analysts predict a potential surge to $10-$15 levels.
• NEAR’s TVL drops to $231M, but bullish Parabolic SAR signals possible recovery and breakout.

NEAR Protocol [NEAR] has dropped to $4.55, marking a 2.39% decrease in the past 24 hours and a 5.51% decline over the past week. NEAR’s 24-hour trading volume reached $268.8 million, while its market cap stands at $5.53 billion. 

The current dip follows a year of underperformance compared to other newer blockchain networks.

Despite this downturn, crypto analyst Michael van de Poppe remains optimistic about NEAR’s potential. He predicts a rebound that could push NEAR’s price to between $10 and $15, suggesting a potential 225% surge from its current level.

Source: X 

Key support and resistance levels

NEAR has retested a previous consolidation area, potentially setting the stage for a bounce. The support zone is noted between $1.35 and $1.50, which could act as a potential entry point if the price continues to correct. 

On the upside, a resistance level at $6.25 has been identified, aligning with previous price consolidation.

Technical indicators like the Parabolic SAR suggest the possibility of a recovery, as dots have formed below the price level. This indicates that bullish sentiment may persist, supporting a potential continuation of the uptrend if market conditions improve.

TVL declines in NEAR’s ecosystem

Data from DeFi Llama shows that NEAR’s Total Value Locked (TVL) stands at $231.93 million, down from a year-to-date high of $358 million. This drop reflects weaker activity in NEAR’s DeFi ecosystem. 

Prominent dApps like Burrow, LiNEAR Protocol, Meta Pool Near, and Ref Finance contribute to the network’s TVL, but the numbers are lower compared to other layer-1 and layer-2 blockchains.

For comparison, Base Blockchain holds $2.43 billion in assets, Arbitrum has $2.34 billion, and Sui has reached $1.01 billion. This indicates that NEAR is currently lagging behind newer networks in terms of DeFi adoption and asset accumulation.

Potential for consolidation and breakout

An AMBCrypto recent report noted that NEAR may extend its trading range within the current consolidation channel, driven by persistent bearish sentiment. 

However, a potential rebound from support levels could lead to a broader recovery. The Parabolic SAR indicator also points to possible bullish momentum, as traders seem to be accumulating NEAR at current levels.

If this trend continues, NEAR could maintain its position within the consolidation phase and potentially break out if market sentiment shifts positively.