The price trend of NEAR token is still down, but once it enters the oversold region, demand may recover.

From a long-term perspective, Near Protocol’s organic growth momentum remains strong, which can serve as a stabilizing factor.

Currently, NEAR’s price is clearly in a bearish trend, which could be a boon for short traders as the cryptocurrency market seems to be looking for more downside.

Although NEAR's price continues to fall, the half-full view points to other factors at play. Recent selling pressure has pushed the market into oversold conditions, which could mean that sentiment is about to change. In addition, we are also observing some divergences in the relative strength index (RSI), which could indicate that the market may be about to reach a support point.

Understanding the current state of demand for NEAR

Despite the opportunity for a rebound, on-chain indicators suggest that investors are still somewhat hesitant to jump back into the market. This view is reinforced by the fact that the composite sentiment indicator remains close to this month’s lows despite the sharp price decline.

Meanwhile, on-chain trading volumes are also showing signs of a lack of excitement, meaning the market is struggling to secure a bullish footing. However, the good news is that the derivatives market has shown that bullish demand is recovering. This trend is particularly noticeable in funding rates on Binance and DYDX, which have returned to positive levels over the past two days.

Before you get too excited, it is worth noting that external factors such as rising inflation have been rising. This highlights the tight liquidity situation, which may lead to weak demand in the short term.

However, NEAR's long-term prospects remain rock solid, especially considering its performance over the past three years. Although the price may be trending downward, the protocol has been achieving significant growth.

In those three years, NEAR has successfully attracted more than 1,000 projects to join its network. During this period, the number of accounts has grown to more than 300,000.

The point is that while NEAR's price may be falling, the protocol has been building a strong ecosystem. It has a solid foundation for organic growth that will be able to support a pick-up in interest once the crypto market downturn is over. This could be beneficial for NEAR in the long run.

Thank you for reading, see you next time!