NEAR Protocol is currently undergoing a correction phase that began earlier this year, resulting in a significantly lower price that may appear more favorable to market participants, including short-term traders considering potential long positions.

At the time of writing, NEAR is trading around $2.50, compared to an opening price of approximately $6.00 at the beginning of the year. A return to that level could indicate a potential capital appreciation of 150%.

Near Protocol technical analysis

NEARUSD - 1 Day Time Frame

Identifying the appropriate time frame is essential for analyzing market structure. In this case, the daily time frame appears to offer the clearest view. A typical long setup involves an initial sweep of Sell-Side Liquidity followed by a close above the nearest resistance zone.

This exact structure emerged on the daily chart in early August, signaling a possible entry into long positions. A similar setup also appeared at the end of June, as illustrated on the attached chart. These parameters have been highlighted — liquidity sweeps are indicated with blue arrows, while resistance zones are marked in orange.

Near Protocol price target

Following the first setup, the price experienced an increase of up to 40%. For the second setup, it may be prudent to define a protective Stop Loss level. As shown on the chart, this could be placed below the internal low.

In parallel, Take Profit targets may be considered above key Buy-Side Liquidity levels, all of which are marked on the chart. The highest of these targets aligns with the year-to-date high, as referenced earlier.

From a broader perspective, the recurrence of similar bullish structures on the same time frame could indicate the early stages of a longer-term reversal. If the price continues to hold above key support zones and breaks through additional resistance levels, NEAR Protocol may be positioned to resume a sustained upward trend.

As such, this remains a technical setup that market participants may wish to observe closely in the coming days and weeks.