NEAR Protocol Rebounds to $2.75 After Heavy Institutional Selling Triggers 7% Drop

Quick Take

• NEAR currently trading at $2.75 (+1.18% in 24h)
• NEAR’s MACD histogram shows bullish momentum with 0.0062 reading
• Heavy institutional selling on August 14 triggered 7% decline before recovery

What’s Driving NEAR Protocol Price Today?

NEAR Protocol has shown remarkable resilience following one of its most challenging weeks in recent months. The primary catalyst behind current price action stems from Wednesday’s institutional selling pressure, where over 19.99 million NEAR tokens were dumped, driving the NEAR price from $3.05 to a low of $2.75.

This institutional sell-off marked a dramatic reversal from Tuesday’s positive momentum, when NEAR price surged 5.82% from $2.75 to $2.91. That rally was fueled by substantial institutional inflows exceeding $7.6 million, coupled with rising user growth metrics that initially boosted investor confidence.

The whipsaw price action demonstrates NEAR Protocol’s sensitivity to large institutional flows. Despite the recent volatility, NEAR price has found support around current levels, with today’s 1.18% gain suggesting buyers are stepping in at these lower prices.

NEAR Technical Analysis: Bullish Signals Emerge

NEAR Protocol technical analysis reveals a mixed but increasingly optimistic picture. The most encouraging signal comes from NEAR’s MACD, which shows a bullish crossover with the histogram reading 0.0062 above the signal line. This momentum indicator suggests the recent selling pressure may be exhausting.

NEAR RSI currently sits at 52.77, placing it squarely in neutral territory. This reading indicates NEAR Protocol is neither overbought nor oversold, providing room for movement in either direction. For traders, this neutral NEAR RSI level suggests the token could break either way depending on market catalysts.

The moving average structure presents a cautiously optimistic outlook. NEAR price trades above its 50-day SMA ($2.59) and 200-day SMA ($2.68), while sitting just below the 7-day SMA at $2.76. This positioning suggests NEAR Protocol maintains its longer-term bullish bias despite short-term pressure.

NEAR Protocol’s Bollinger Bands show the token trading at 67% of the band width, indicating moderate bullish positioning. The upper band at $2.96 represents the next significant resistance level that could cap near-term upside.

NEAR Protocol Price Levels: Key Support and Resistance

Based on Binance spot market data, NEAR Protocol support levels are clearly defined. The immediate support sits at $2.30, which aligns closely with the recent low of $2.68 during Wednesday’s sell-off. A break below this level could trigger further selling toward the NEAR Protocol strong support at $2.02.

NEAR resistance levels present multiple hurdles for bulls. The immediate NEAR resistance sits at $3.06, just above the recent high of $3.05 where institutional selling began. Breaking this level would target the NEAR Protocol strong resistance at $3.10, which represents a crucial psychological barrier.

The daily Average True Range (ATR) of $0.19 indicates NEAR Protocol typically moves about 19 cents per day, providing context for position sizing and stop-loss placement. Traders should expect volatility within this range as normal market behavior.

Should You Buy NEAR Now? Risk-Reward Analysis

The current setup presents distinct opportunities for different trading approaches. Swing traders might consider NEAR Protocol attractive at current levels, given the bullish MACD divergence and support above key moving averages. A position with stops below $2.30 targets the $3.06 resistance level, offering a favorable 3:1 risk-reward ratio.

Day traders should focus on the $2.68-$2.85 range, where NEAR price has established a short-term trading channel. The neutral NEAR RSI provides flexibility for both long and short positions depending on momentum shifts.

Long-term investors face a more complex decision. While NEAR Protocol’s fundamental growth metrics remain positive, the recent institutional selling suggests larger holders may be reducing exposure. Dollar-cost averaging into positions might be prudent rather than deploying full capital immediately.

Risk management remains crucial given NEAR Protocol’s demonstrated volatility. The 24-hour trading range of $2.68-$2.78 shows how quickly prices can move, making position sizing and stop-losses essential for all trading strategies.

Conclusion

NEAR Protocol stands at a critical juncture following this week’s institutional volatility. The current NEAR price of $2.75 represents a reasonable entry point for traders willing to navigate short-term uncertainty. With NEAR Protocol technical analysis showing early bullish momentum signals and support levels holding firm, the next 24-48 hours could determine whether NEAR breaks back toward $3.00 or retests lower support levels. Traders should monitor volume closely, as sustained buying interest above 20 million daily volume could signal the end of institutional selling pressure.

Image source: Shutterstock