Despite facing the impact of recent downward trends in the market—with a decrease of 16.48% in the past week and a 10.61% drop over the last four weeks—NEAR Protocol [NEAR] has exhibited signs of resilience. A marginal drop of 0.43% in the previous 24 hours suggests a potential shift towards bullish dominance.
Short Sellers Misinterpret Market Trends
An important signal of changing market trends is the significant liquidation of short sellers who had anticipated a decline in NEAR’s price.
Over the last 24 hours, short positions on NEAR valued at $114.86k have been closed out, reflecting the increasing number of traders favoring a price upswing.
CryptoCrypto has now turned to analyzing the future trajectory of NEAR as buying interest continues to rise.
NEAR Poised for a Rally Towards $5.2, with Further Upside Potential
The technical analysis by CryptoCrypto indicates that the bullish sentiment is reinforced by a symmetrical triangle pattern and other positive indicators.
Presently, NEAR is trading around the support level of the symmetrical triangle formation at $3.91. If the buying pressure at this level persists, the price is anticipated to reach the initial target of $5.256, although a retracement to $4.317 might occur.
Increased buying momentum could then drive NEAR towards higher targets of $6.489 and $8.520, where substantial liquidity is expected.
However, in a scenario where market dynamics shift and sellers take control, the token could retreat to potential support levels at $3.085 and $2.479.
Buyers Acknowledge NEAR’s Undervaluation
The analysis conducted by CryptoCrypto utilizing the Chaikin Money Flow (CMF) and the Market Value to Realized Value (MVRV) indicators indicates that NEAR is presently undervalued.
The MVRV ratio, which compares market capitalization to realized capitalization, suggests undervaluation when below 1. This implies a possible reversal in the price trend of the asset, as is evident in NEAR’s current reading of 0.595.
At the same time, the CMF, measuring accumulation and distribution, is below zero but has started to trend sideways, indicating a balance between buying and selling pressures.
Such situations often precede either a market upsurge or downturn. A breakout would bolster bullish sentiment, while a breakdown could result in a price decline.