NEAR Protocol Price Forecast: Is a corrective phase taking shape as ETF flows point to softer demand?

• Most of NEAR Protocol's 6% rally from the previous day is erased as the token drops 5% on Thursday.
• Buying pressure appears to be weakening, with NEAR-focused ETF flows turning mixed this week.
• Fading upward momentum leaves NEAR in a corrective phase within its wider uptrend, according to the technical outlook.

Most of NEAR Protocol's (NEAR) recovery from the previous day has been reversed, with the token trading below $5.00 at press time on Thursday. The 5% decline follows a 6% rebound. After three consecutive weeks of inflows, mixed flows into the NEAR-focused exchange-traded fund (ETF) this week point to softer buying pressure. Technically, the picture remains mixed: weakening upward momentum is giving way to a correction within the broader uptrend.

Is institutional demand losing strength?

Institutional demand appears to be wavering as flows into Bitwise’s NEAR-focused ETF (NRR) turn mixed this week. According to SoSoValue data, Wednesday brought $830,700 in inflows, following $2.54 million in outflows on Tuesday, the fund's first-ever day of selling.

Following three consecutive weeks of inflows, the ETF has attracted $3.71 million so far this week, including Monday's inflow of $5.42 million. If the week ends with net inflows, concerns over institutional investors withdrawing could ease.

Retail positioning, meanwhile, appears to be building this week. Open interest (OI) in NEAR futures rose from $1.47 billion on Monday to $1.67 billion on Thursday. A sustained increase in OI typically signals renewed trader interest in NEAR.

Technical outlook: Can NEAR build momentum during the pullback?

A neutral stance with a slight upside constraint prevails as NEAR changes hands at $4.99 at press time on Thursday. The four-hour chart places the token below the 50-period exponential moving average (EMA) of $5.03, though still comfortably above the 200-period EMA at $4.61. This positioning points to consolidation within the wider uptrend.

On the downside, bullish support at lower levels rests on the rising trendline near $4.70, with further backing from the 200-period EMA and the 25 September low of $4.44. Should a break below $4.44 be confirmed, the near-term support cluster could be invalidated, exposing NEAR to a sharper fall towards support at $3.91, marked by the 19 September high.

Signs of weakening bullish momentum are also evident in the four-hour indicators. The Moving Average Convergence Divergence (MACD) and its signal line face the risk of a bearish crossover, while the Relative Strength Index (RSI) stands near 47, beneath the midline.

A renewed uptrend would require NEAR to clear resistance at $5.44, the 15 October high. That level restricted Wednesday's advance, resulting in a 5% fall so far today. A move above it could pave the way for a test of the 12 October high at $6.00.

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