In the recent month, NEAR has faced significant challenges, experiencing a 25% decrease in its value. Over the last 24 hours, the altcoin witnessed an additional 2.80% decline. Despite this current bearish trend, positive indicators hint at a possible halt in the downward movement.
The critical question remains – can the optimistic outlook withstand the selling pressure exerted by market participants?
NEAR Price Chart Analysis:
On the daily chart, NEAR has formed a bullish triangle pattern, often signaling an upcoming bullish surge. This pattern comprises a diagonal resistance line and a horizontal support line.
For NEAR to progress further, it must test the support level around $3.520. Following this test, the asset might either rebound within the pattern or break out. A breakout scenario could lead to two significant targets – a short-term level at $5.606 and a long-term target of $8.520.
However, in the case of prevailing bearish pressure, NEAR could retreat towards its 2024 low of $2.450, possibly experiencing additional losses.
To predict NEAR’s future price movements, CryptoCrypto has analyzed on-chain metrics to provide insights into potential trends.
Bearish Pressure Increasing:
Indicators point towards growing sell pressure on NEAR, suggesting a bearish sentiment that could drive prices lower.
Currently, NEAR’s liquidation data reveals a significant imbalance, with over $1.02 million in long liquidations compared to just $45.81k in short liquidations. This disparity indicates a distinctly bearish market sentiment, implying further downside potential for the asset.
Liquidation data reflects forced closures of leveraged positions due to margin requirements not being met, showing where losses are concentrated—currently, among long positions.
Moreover, NEAR’s Open Interest, which gauges sentiment through active derivatives contracts, decreased by 1.65% in the last 24 hours to $185.65 million, reinforcing the altcoin’s bearish stance.
With signals from both liquidations and Open Interest pointing towards sustained bearish pressure, the expected bullish support for NEAR may struggle to hold.
Confirmation of Bearish Trend:
Currently, NEAR’s prevailing trend remains bearish, supported by key technical indicators such as the Relative Strength Index (RSI) and Parabolic SAR, signaling continued downward movement.
The RSI is at a bearish reading of 30.69, and a drop below the critical 30 level could indicate further downside for NEAR.
Similarly, the Parabolic SAR’s markers are positioned well above the price candles, presenting another bearish indication.
Considering the bearish signs from both on-chain metrics and technical analysis, a potential target of $2.45 might become more likely in the coming sessions.