Near Protocol (NEAR) Price Prediction 2023 – Will NEAR Recover Its Losses?

After a week-long rally that delivered a 17.12% gain, Near Protocol's [NEAR] upward momentum has started to fade.

After a week-long rally that fetched Near Protocol (NEAR) a 17.12% gain, the asset’s upward momentum has begun to wane. The price of the asset has been gradually declining, with a negligible rise of just 0.18% over the past 24 hours.

However, given the current market sentiment, NEAR seems poised to reverse its recent minimal gains, as dwindling interest in the asset suggests a shift toward bearish conditions.

Potential price drop coming?

There has been a sharp decline in the number of active addresses on Near Protocol, showing a lack of interest, which often has a negative impact on price.

The number of active addresses has fallen from 4.2 million on the 1st of January to the press time figure of 3.2 million, according to Artemis.

This decline suggested that fewer market participants were transacting the token or engaging with the Protocol, which could further drive the prices of NEAR even lower.

To assess whether this trend correlates with price movements, AMBCrypto reviewed the price action on the charts and found signs of a potential decline.

Supply zone exerts downward pressure on NEAR

On the 4-hour chart, NEAR appeared to be in a vulnerable position after trading into a supply zone between $6.154 and $6.311.

A supply zone is an area where significant sell orders are concentrated, which typically causes the asset to decline when the price reaches this level.

Source: TradingView

Using the Fibonacci retracement tool, it suggests that the asset may experience a price drop, potentially reaching as low as $4.870 if sell pressure intensifies.

However, there are other key support levels where the price may rebound, as indicated on the chart, specifically at $5.712, $5.551, $5.390, and $5.161.

Further analysis of technical indicators suggests bearish outlook for NEAR holders

Bearish trend confirmed

The Average Directional Index (ADX) on the chart indicated a strong bearish sentiment, as the ADX line spiked upward, reading 42.19 at the time of writing.

ADX is a technical indicator used to gauge the strength of a market trend. An upward movement in the ADX suggests a strong trend, while a downward movement indicates a weak one.

The formation of the death cross—a pattern where the signal line (orange) crosses above the blue MACD line—further confirms this bearish signal. At present, the orange line is at 0.135, while the blue line is at 0.128.

Read NEAR Protocol’s [NEAR] Price Prediction 2025–2026

The death cross is typically followed by a price decline and the formation of red histogram bars, as seen on the chart.

If the ADX line continues its upward trend and the signal line remains above the MACD line, the price of the asset is likely to continue falling.