Near Protocol [NEAR] faces decline, yet a bullish trend persists

Downward Pressure on NEAR

NEAR Protocol [NEAR] has experienced a downtrend across various timeframes, marking a 6.00% decline over the last month and a 7.85% drop in the past week.

The latest data shows a 1.82% decrease in the last 24 hours, indicating a continued downward trend for NEAR.

While there might be a slight recovery to maintain its current position during the consolidation phase, the outlook for a significant upward movement from the current price levels remains uncertain.

Impending Decline for NEAR

NEAR has been trading within a consolidation range between $5.005 and $4.561 since October 2nd. Despite typically signaling accumulation, this phase for NEAR suggests an upcoming distribution instead.

In the event of a distribution phase, NEAR could target price levels at $3.833 initially, with a further potential decline to $3.494 if selling pressure persists.

Should the expected distribution fail to materialize, NEAR is likely to continue trading within its current range. Analysts are now looking into other onchain metrics to predict NEAR’s future movements.

Signs of Active Sellers with Loss Imbalance

Coinglass reports a notable imbalance between short and long liquidations in the last 24 hours.

Out of $388.22k worth of NEAR liquidated, a considerable $377.36 thousand came from long positions, while only $10.86 thousand was linked to short positions.

This disparity suggests a bearish market trend, with the lower liquidation side, in this case short traders, likely influencing market direction.

Furthermore, the Weighted Funding Rate has seen a significant drop, indicating that short positions are paying long positions amid prevailing bearish sentiments.

This rate represents the average funding rate across exchanges adjusted for Open Interest size, reflecting holding costs for long or short positions in perpetual futures contracts.

Subtle Signs of Recovery Potential

Despite the prevalent bearish sentiment, there is a chance for NEAR to rebound from the consolidation channel support level, expanding its trading range within this channel.

The Parabolic SAR shows dots forming below NEAR’s price, indicating a bullish market sentiment and suggesting potential recovery.

Traders seem to be actively buying NEAR at current levels, hinting at a possible sustained position within the consolidation phase with the potential for a breakout if sentiment shifts positively.