On-chain metrics show active address count is dropping, with Open Interest also dropping in recent days
Technical indicators say NEAR's recent decline is losing momentum
NEAR has been among the worst performing tokens on the market recently, down 16.44% over the past month and a further 6.57% over the past 24 hours – a sign of a bearish trend.
However, despite this negative sentiment, market analysis suggests that selling pressure may ease somewhat. This cooling period could pave the way for a significant price recovery, potentially offsetting recent losses.
Lack of interest pushes NEAR down
Decline in Daily Active Addresses on the NEAR Network, Reported by Artemis – A Sign of Fading Interest Among Users and Investors.
Active Addresses (AA) are an important measure of network utility and usage, and they are closely correlated with the perceived value of a Token. When both Active Addresses and price decrease simultaneously, it signals waning interest, potentially leading to further price declines.
At the time of writing, NEAR’s Daily Active Addresses have dropped sharply for four consecutive days, from 4.4 million to 3.9 million. This decline is also reflected in NEAR’s price, with the cryptocurrency trading at $5.11 at press time, according to CoinMarketCap.
Source: Artemis
TinTucBitcoin’s analysis also revealed high selling pressure, especially from derivatives traders, further weighing on NEAR’s price performance.
Derivatives traders show lack of confidence in NEAR
Selling pressure on NEAR has also intensified, especially among derivatives traders as they are largely holding short positions.
According to Coinglass, NEAR’s long-short ratio is at 0.8793, indicating an increase in short contracts. Traders open short positions when they expect the price to fall. A long-short ratio below 1 reflects a higher number of sellers, and lower values indicate stronger bearish sentiment.
The impact of this selling pressure seems to be evident when examining NEAR’s Open Interest. In fact, it has dropped 6.86% over the past 24 hours, down to $237.39 million on the chart.
Source: Coinglass
Liquidation data also reflects bearish market sentiment. Of the $966,310 worth of contracts liquidated in the market, $901,510 came from long traders who suffered losses when the price moved against their predictions. This trend suggests that NEAR prices could continue their downtrend.
However, technical indicators seem to indicate a possible weakening of the downtrend.
For example – the Average Directional Index (ADX), which measures the strength of a market trend, shows a decreasing value on the weekly chart. A high ADX indicates a strong trend, while a falling ADX indicates weakening momentum.
At the moment, NEAR has an ADX of 17.85 in a downtrend, meaning that selling activity could ease soon. If this trend continues, NEAR could see a recovery and start trading higher.
Source: Trading View
What's next for NEAR?
On the weekly chart, NEAR appears to be trading within a symmetrical triangle pattern—a consolidation phase where price narrows between established support and resistance levels as buying activity slowly increases. Historically, this pattern has often marked a significant price breakout.
However, continued selling pressure could push NEAR down to the $4,625 support, or potentially deeper, towards the bottom of the symmetrical channel.
Source: Trading View
This drop is likely to mark the final leg of the current downtrend before a recovery, with the asset expected to rally back to at least $10 on the chart.
In this context, the continued decline could act as a precursor to a major price move in the near future.