Near Protocol (NEAR) Token Crashed to 12-Month Low, Formed Death Cross Pattern, Signaling Further Downside

Near (NEAR), a layer-1 cryptocurrency valued at $3.7 billion, declined even after developers announced major news on Thursday.

Near Protocol (CRYPTO: NEAR) token crashed to its lowest level in 12 months on Friday and formed a death cross pattern, signaling further downside.

Near Price Today Crashes To Lowest Level In A Year, Forming Death Cross: What's Next?

Near crypto also retreated as the total value locked in its DeFi ecosystem continued falling. The network has a TVL of $170 million, down from last year’s high of over $393 million. Burrow, Linear Protocol, Meta Pool Near, and Ref Finance are the biggest players in its ecosystem.

Here's What Happened: Near Protocol, the layer-1 cryptocurrency valued at $3.7 billion, declined even after developers announced major news on Thursday.

Developers announced the launch of a new $20 million AI Agent Fund, which will be deployed in the next few months. The fund will invest in projects within the artificial intelligence industry, particularly focusing on Real World Asset tokenization, gaming, and AI oracles.

AI agents have gained significant traction in the technology and crypto industries over the past few months. For instance, Virtuals Protocol (VIRTUAL), a popular AI generator, has achieved a market cap of over $1 billion. Some AI agents in the ecosystem, such as GAME, aixbt, Vader AI, and Acolyte, have also attained multi-million dollar valuations.

In addition to the AI Agent Fund, Near Protocol is also making other substantial investments in the field of artificial intelligence. One of these initiatives is the One Trillion Agents hackathon, which aims to aid developers in building and scaling AI projects on the Near network.

Near crypto price forecast Near is now trading at $3.20, representing a 2% decline in the past 24 hours and a 12% decrease in the past seven days, according to Benzinga Pro.

The daily chart suggests Near could face further weakness in the coming days. It formed a triple-top pattern around the $8.255 level, a bearish formation characterized by three peaks and a neckline, which in this case is at $3.10. Near briefly moved below this neckline earlier in the week.

The token has also formed a death cross pattern, where the 50-day and 200-day moving averages have crossed, a historically bearish signal in technical analysis.

Moreover, the Average Directional Index, which measures trend strength, has risen to near 40. A reading above 20 typically indicates a strengthening trend.

As a result, Near is likely to continue declining, with sellers targeting the next key support level at $2.40, its lowest swing since January last year.