Near Protocol’s token has recently plummeted to its lowest level in the past year, forming a death cross pattern that indicates potential further downside for this layer-1 cryptocurrency.
Valued at approximately $3.7 billion, NEAR has faced significant challenges, particularly in light of its latest developments. On Thursday, Near’s development team made headlines by announcing the launch of a new $20 million AI Agent Fund. This initiative aims to invest in cutting-edge projects within the artificial intelligence industry. With funds being deployed in the upcoming months, the initiative is particularly focused on projects that push the frontiers of the AI agent sector, exploring areas like Real World Asset tokenization, gaming, and AI oracles. Such developments suggest a commitment to innovation and adaptation within the evolving tech landscape.
The rise in interest around AI agents has mirrored the broader tech trends witnessed in recent months. For instance, the Virtuals Protocol (VIRTUAL) has surged in popularity, achieving a market cap exceeding $1 billion. Other projects, including GAME, aixbt, Vader AI, and Acolyte, have also seen their valuations soar into the multi-million dollar range. This burgeoning sector represents an exciting new frontier in both technology and cryptocurrency, with developers racing to create the next ground-breaking AI solutions.
In addition to the newly launched fund, Near Protocol is delving deeper into the AI landscape by conducting the One Trillion Agents hackathon. This initiative is geared towards empowering developers to innovate and enhance their AI projects on the Near network. Such programs not only stimulate engagement within the developer community but also aim to bolster the Near ecosystem by driving cutting-edge advancements.
Nevertheless, despite these significant announcements, Near Protocol has experienced a decline, exacerbated by the dwindling total value locked (TVL) in its decentralized finance (DeFi) ecosystem. Currently, the TVL sits at $170 million, a stark decrease from last year’s peak of over $393 million. The primary players in this ecosystem include prominent protocols like Burrow, Linear Protocol, Meta Pool Near, and Ref Finance. This decrease in capital locked in the DeFi space indicates a broader trend of investor caution and implies underlying structural issues within the meme coin market.
Near Crypto Price Forecast
Looking at the daily chart, Near is potentially poised for further weakness in the near term. The formation of a triple-top pattern around the $8.255 level is particularly concerning. This bearish formation—characterized by three distinct peaks resting beneath a horizontal line called the neckline—indicates a possible downward trend, with the neckline currently positioned at $3.10. Earlier this week, the token even dipped below this critical level, signaling further bearish sentiment among traders.
Moreover, a death cross formation has emerged, indicated by the crossing of the 50-day and 200-day moving averages. Historically, this pattern is recognized in technical analysis as a significant bearish signal, indicating that a deeper decline may be imminent. Traders often interpret this event as a red flag, suggesting that market sentiment may continue to deteriorate.
The Average Directional Index (ADX), which serves to measure the strength of trends within the market, has also seen a notable uptick, nearing a reading of 40. In technical analysis, an ADX level above 20 typically suggests that a trend is strengthening, reinforcing the notion that bearish momentum could persist for Near.
Consequently, traders and investors should closely monitor Near Protocol as further declines seem likely, with sellers eyeing crucial support levels—and the next target appearing to be around $2.40. This represents the lowest swing level since January of last year, and further drops could signal deeper issues within the broader cryptocurrency market.
