• The number of active addresses on the Near Protocol has seen a significant decline, raising concerns.
• NEAR has now entered a critical supply zone and faces the risk of falling further as a “death cross” takes shape.

After a week-long rally that delivered a 17.12% gain, Near Protocol’s [NEAR] upward momentum has started to fade. The price of the asset has been gradually declining, with a negligible rise of just 0.18% over the past 24 hours.

Given the current market sentiment, NEAR appears ready to reverse its recent minimal gains, as waning interest in the asset reflects 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 ass

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Author: Olayiwola Dolapo