- Near Protocol’s consolidation phase suggested a probable decline.
- However, a rebound could allow NEAR to continue trading within its consolidation channel.
As a seasoned researcher with years of experience in the cryptocurrency market, I have witnessed numerous bull and bear cycles. Observing Near Protocol (NEAR) currently, it appears we are facing another downward trend. The bearish sentiment is palpable, with the 24-hour decline being a testament to that. However, as they say in trading, “Markets can remain irrational longer than you can stay solvent,” so it’s essential to keep an eye on potential rebounds.
The downward trend for Near Protocol’s [NEAR] is noticeable on all time scales, as it has decreased by 6.00% over the last month and fallen by 7.85% in just one week.
It has entered another downward phase, recording a 1.82% decrease in the last 24 hours.
Although a small bounce back could help NEAR stay within its ongoing consolidation period, it’s hard to predict with confidence whether a substantial price increase will occur starting from its current level.
NEAR faces imminent decline
Since October 2nd, the price of NEAR has been fluctuating within a range between approximately $5.005 and $4.561. Generally, such a phase implies that coins are being accumulated, but in this instance for NEAR, it appears to foreshadow a period of distribution.
If this distribution occurs, NEAR could target two potential price levels: the first at $3.833, and if selling pressure continues, a further decline to $3.494.
If the predicted distribution doesn’t occur, it’s probable that NEAR will continue to trade within its current price band. To figure out what NEAR might do next, AMBCrypto is examining various on-chain indicators for insights.
Trader loss imbalance signals active sellers
Over the last 24 hours, there’s been a notable discrepancy developing between the number of positions closed early (short liquidations) compared to those held open for a longer period (long liquidations), as reported by Coinglass.
Approximately $377,360 out of the $388,220 worth of NEAR that were liquidated from the market came from long positions, whereas just $10,860 can be traced back to short positions.
As a researcher, I’ve observed an imbalance where the short traders seem to be in control, given they have less liquidation at stake. This suggests that the market might be heading towards a downward trend, as it’s often the side with less risk (in this case, the short traders) that influences the market direction over time.
Moreover, there’s been a significant drop in the Weighted Funding Rate, which suggests that those holding short positions are compensating those with long positions during a period of widespread bearishness.
The Weighted Funding Rate represents the average funding rate across exchanges, adjusted for the size of Open Interest, which reflects the cost of holding long or short positions in perpetual futures contracts.
If there’s a greater tendency for sellers over buyers in the market (liquidation imbalance favoring bearish traders) and the Weighted Funding Rate keeps dropping, it seems likely that the price of NEAR might decrease beyond its current trading range.
Faint signs of a rebound
Despite ongoing negative market opinions, there’s a chance that NEAR might recover at its support level within the consolidation range, potentially expanding its trading scope inside this channel.
The Parabolic SAR (Stop and Reverse) indicates a possible market recovery as it shows points below NEAR’s price, implying that the market still maintains a positive, or bullish, stance.
Read NEAR Protocol’s [NEAR] Price Prediction 2024–2025
This signals that some traders are actively buying NEAR at current levels.
If these patterns persist, it’s possible that NEAR may maintain its current consolidation stage and potentially surge past it if the market mood improves favorably.
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2024-10-24 19:36