$NEAR Protocol ($NEAR) is attempting to stabilize above $3.50 on Tuesday after recovering from the $3.40 support level during the previous trading session.
However, weakening institutional demand, declining futures participation, and subdued buying interest among US investors continue to cloud the cryptocurrency's near-term outlook.
$NEAR ETF outflows signal weakening institutional demand
Institutional interest in $NEAR Protocol has remained subdued following two consecutive weeks of withdrawals from investment products tracking the cryptocurrency.
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According to SoSoValue, $NEAR-focused ETFs recorded no net inflows or outflows on Monday, suggesting that institutional activity remained largely unchanged at the beginning of the week.
However, the flat reading followed two consecutive weeks of negative flows.
$NEAR-focused funds recorded approximately $3.43 million in net outflows during the week ending October 30, followed by another $4.38 million in withdrawals during the week ending November 6, bringing the combined total to $7.81 million.
The persistent redemptions suggest that institutional investors have been reducing their exposure to $NEAR amid broader cryptocurrency market uncertainty.
$NEAR's derivatives market is also showing signs of declining investor participation. According to CoinGlass, $NEAR futures Open Interest (OI) stands at $820.64 million, up slightly by 1% in the last 24 hours.
However, it is down from the $1.2 billion recorded on October 22.
Falling Open Interest indicates that traders are closing or reducing positions, suggesting weaker speculative participation as the cryptocurrency struggles to recover.
Demand for $NEAR among US investors also appears subdued, according to Coinbase premium data.
CoinGlass shows that $NEAR's Coinbase premium stood at -0.097% on Tuesday, indicating that the token was trading at a slight discount on Coinbase relative to the exchange benchmark used in the indicator.
A negative premium can suggest weaker buying interest among Coinbase participants, particularly when it persists alongside declining prices and reduced trading activity.
Will $NEAR retest the $2.97 support level?
$NEAR's technical structure remains bearish despite its recent rebound from the $3.40 support region.
At the time of writing on Tuesday, the cryptocurrency trades around $3.57, holding below its major Exponential Moving Averages (EMAs) on the four-hour chart.
The 50-period EMA stands at $3.8332, while the longer-term 200-period EMA is positioned at $4.2614.
Trading below both indicators suggests that sellers continue to dominate the near-term trend, with recovery attempts likely to encounter resistance.
$NEAR is also moving within a falling wedge pattern, identified by descending trendlines that gradually converge as the price consolidates.
The upper boundary of the pattern currently sits around $3.7981, while the lower support trendline is positioned near $3.4000.
A horizontal support level at $3.4030 reinforces the lower boundary, creating an important demand zone where buyers may attempt to defend the cryptocurrency.
If $NEAR breaks decisively below this support area, selling pressure could intensify and expose the next significant downside target at $2.9780.
Failure to stabilize around this level would increase the risk of a deeper correction toward $2.7280.
Momentum indicators also suggest that bearish pressure remains present. The Relative Strength Index (RSI) hovers near 38, below the neutral 50 level, indicating that buying momentum remains relatively weak.
Meanwhile, the Moving Average Convergence Divergence (MACD) continues to reflect modest downside momentum, suggesting that sellers retain an advantage despite the recent recovery.
Although $NEAR's broader outlook remains bearish, the falling wedge formation leaves room for a potential bullish breakout if buying pressure strengthens.
A confirmed breakout above the pattern's upper boundary is necessary before treating the formation as a bullish signal.
The first significant resistance stands near $3.7981, corresponding to the descending trendline.
A sustained move above this level could encourage buyers to target the 50-period EMA at $3.8332.
Beyond this area, the horizontal resistance at $3.9160 represents another important hurdle. A convincing breakout above these levels would improve the near-term technical structure and potentially open the door for a recovery toward the 200-period EMA around $4.2614.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
