NEAR Protocol Price Forecast: Corrective phase develops as ETF flows signal weakening demand

NEAR Protocol (NEAR) is down 5% at press time on Thursday, trading below $5.00 and wiping out most of the previous day's 6% recovery. NEAR-focused Exchange-Traded Fund (ETF) shows mixed flows this week, suggesting weaker buying pressure after three consecutive weeks of inflows. The technical outlook for NEAR is mixed as a corrective phase develops within a broader uptrend amid fading upside momentum.

Institutional appetite eases

Bitwise’s NEAR-focused ETF (NRR) is facing mixed inflows this week, suggesting flickering demand from institutional investors. SoSoValue data shows NRR recorded $830,700 in inflows on Wednesday, recovering from its first-ever day of selling, with $2.54 million in outflows on Tuesday.

The ETF also maintains a streak of three straight weekly inflows and has recorded $3.71 million so far this week, including the $5.42 million inflow on Monday. A positive close to the week could ease the fears of institutional investors backing out.

On the retail side, the NEAR futures Open Interest (OI) has increased to $1.67 billion on Thursday, up from $1.47 billion on Monday, suggesting a positional buildup this week. Typically, a steady rise in OI indicates a renewed appeal for NEAR among traders.

Technical outlook: NEAR gains momentum on a pullback

NEAR trades at $4.99 at press time on Thursday, holding in a neutral but slightly capped stance. On the four-hour chart, the price sits below the 50-period Exponential Moving Average (EMA) at $5.03 but remains comfortably above the 200-period EMA at $4.61, suggesting consolidation within the broader uptrend.

Looking down, the rising support trendline near $4.70 underpins bullish strength at lower levels, reinforced by the 200-period EMA and the September 25 low at $4.44. A confirmed breakout below $4.44 could nullify the near-term support cluster, risking a steeper decline toward the $$3.91 support level set by the September 19 high.

The Moving Average Convergence Divergence (MACD) and signal line risk a bearish crossover on the four-hour chart, while the Relative Strength Index (RSI) hovers at 47, below the midline, hinting at fading bullish momentum.

To reinstate an upward trend, NEAR price must surpass the $5.44 resistance set by the October 15 high, which capped gains on Wednesday and resulted in a 5% decline so far today. This could open the path toward the October 12 high at $6.00.

(The technical analysis of this story was written with the help of an AI tool. Know more.)