NEAR Protocol (NEAR) Is Down 93% — But Price Action Hints at an Early Reversal Setup

NEAR experienced some tough times after reaching its all-time high of almost $49. This was soon followed by an extended bear trend, erasing many of those gains, thus plunging NEAR into a long-term downward trend. It seemed for quite a while that NEAR had been abandoned in the L1 competition.

Crypto Patel points to a long-term structure where the NEAR price has been working through a full markdown cycle inside a descending channel. After a recent sweep below previous lows, price reacted from a high-timeframe demand zone between roughly $0.95 and $1.20. That reaction has pushed NEAR back toward the $1.50–$1.60 area.

Why Traders Are Watching the NEAR Price Again

Looking at the weekly chart shared by Patel, the structure is pretty clear. The NEAR price has been printing lower highs and lower lows since its cycle peak. Every recovery attempt along the way has been rejected by overhead resistance, especially the larger zone between $7.77 and $16.72, which used to act as support before the breakdown.

Right now, attention is on the lower end of the chart. The area between $1.20 and $2.00 is being treated as a potential accumulation zone. This is where larger players often step in quietly, after most of the panic selling has already happened.

The recent move above $1.40 matters here. That level acted as a short-term trigger point for buyers, and holding above it keeps the structure from slipping back into immediate weakness. If the NEAR price can stay above that zone, traders will likely start watching for moves toward $1.80 and $2.80 next.

The bigger test still sits around $3.20. A strong move through that level would be the first real sign that the long-term structure is changing in a meaningful way.

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The AI Narrative Is Adding a New Angle

One of the driving factors that may cause renewed interest in the NEAR price is the growing AI story surrounding the project. The NEAR Protocol team seems to be actively moving towards AI infrastructure development with such projects as NEAR AI Cloud and integrating decentralized intelligence networks.

Narratives play an important role in crypto investing. When a particular project manages to get linked with a trending topic like AI, it can draw developers, speculators, and new funds.

There are some regulatory factors at play here as well. Grayscale has filed a request to transform its NEAR Trust into a spot ETF. Should this happen in the future, this could create opportunities for more traditional investors to get exposure to the asset.

Moreover, in recent news, the NEAR Protocol has halved its inflation rate. This will help decrease the pressure on the NEAR token supply and provide support for the price in case of improved demand. However, things aren’t always so straightforward.

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Where the NEAR Price Could Go Next

The NEAR price is currently within the recovery stage, not the reversal phase. There has been an improvement in momentum; however, the buying pressure is not yet fully engaged. Provided buyers are able to hold at $1.40 while making further advances, the next targets are set at $1.80 and $2.80.

A breakout above $3.20 would be a powerful sign that the structure is about to change. Otherwise, should $1.00 break, there would be little reason to talk of accumulation and lower levels might become relevant once again.

Currently, the NEAR price is in that painful no-man’s land, in which nothing decisive happens just yet. While the drop has been vicious, the current trading range is often used as the starting point of long-term reversals.

At the moment, NEAR is facing a tough choice: either to create a solid base or to stay trapped in the current downtrend, which was typical of the previous cycle.

FAQS

What is NEAR Protocol (NEAR)

NEAR Protocol is a layer-1 blockchain designed to support decentralized applications with fast transaction speeds and low fees. It aims to improve usability for both developers and everyday users in Web3.

Is NEAR considered a high-risk investment

Yes. Assets that have dropped significantly from their all-time highs tend to be highly volatile. While they can offer strong upside potential, they also carry elevated risk