The NEAR protocol is currently in a significant downtrend, down 16.44% over the past month and an additional 6.57% in the past 24 hours. Despite this bearish momentum, recent market analysis suggests that the downward pressure may be weakening, paving the way for a potential price recovery. Artemis’ on-chain metrics indicate a decline in the number of daily active addresses, falling from 4.4 million to 3.9 million over four consecutive days, reflecting waning interest among users and investors. This drop in active activity is closely correlated to NEAR’s current trading price of $5.11, highlighting the relationship between network utility and token value.
The bearish sentiment is further exacerbated by increasing selling pressure from derivatives traders, who have increasingly adopted short positions on NEAR. Coinglass data reveals a long-to-short ratio of 0.8793, indicating a large number of sellers who expect the price to fall further. Additionally, NEAR’s open interest has fallen by 6.86% in the past day, falling to $237.39 million, while liquidation data shows that $901,510 of the $966,310 in liquidated contracts were from long traders who were facing losses. These indicators suggest that NEAR could continue its downward trend unless there is a major change in market dynamics.
However, technical indicators are offering a glimmer of hope for NEAR’s recovery. The Average Directional Index (ADX) has declined to 17.85 on the weekly chart, indicating weakness in the current downtrend and suggesting that selling pressure could ease soon. Additionally, NEAR is forming a symmetrical triangle pattern on the weekly chart, a consolidation phase that historically precedes a major bullish breakout. If this pattern holds and selling pressure diminishes, NEAR could break out of its current range and potentially revisit $10. Analysts remain cautious, noting that continued selling could push NEAR further down to the $4.625 support level or lower before any significant recovery occurs.