NEAR Protocol Token Price Falls to Lowest Level in 12 Months

Despite recent developments, the NEAR Protocol token has plummeted to its lowest level in 12 months, forming a death cross pattern that signals potential further downside. This decline comes after the announcement of a new $20 million AI Agent Fund, which aims to invest in projects within the artificial intelligence industry.

AI Agent Fund and Near Protocol’s AI Investments

The fund will be deployed over the next few months, targeting developers who push boundaries in the AI agent industry. The focus areas include Real World Asset tokenization, gaming, and AI oracles. This investment in AI agents is part of a larger trend, with Virtuals Protocol achieving a market cap of over $1 billion and other AI agents like GAME, aixbt, Vader AI, and Acolyte attaining multi-million dollar valuations.

Additionally, NEAR Protocol is currently running the One Trillion Agents hackathon, an initiative designed to help developers build and scale AI projects on the Near network. This investment in AI reflects the growing popularity of AI agents in the technology and crypto industries.

DeFi Ecosystem and Total Value Locked (TVL)

However, the total value locked in NEAR Protocol’s DeFi ecosystem continues to fall, with a current TVL of $170 million, down from last year’s high of over $393 million. The largest players in the ecosystem include Burrow, Linear Protocol, Meta Pool Near, and Ref Finance.

NEAR Crypto Price Forecast

The daily chart suggests that NEAR may face further weakness in the coming days. A triple-top pattern has formed around the $8.255 level, which is a bearish formation characterized by three peaks and a neckline at $3.10. 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.

Additionally, the Average Directional Index (ADX) has risen to near 40, indicating 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.

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