Introduction
NEAR Protocol has been struggling recently, with its price dropping over 16% this month and another 6.57% in just the last 24 hours. Despite this downward trend, some market indicators suggest the selling pressure might be slowing down. furthermore, this shift could give NEAR a chance to recover in the future.
NEAR Active Addresses and Falling Interest
One key reason for NEAR’s price drop is the decline in its Daily Active Addresses (AA). According to Artemis, the number of active addresses fell from 4.4 million to 3.9 million in just four days. This decline is a sign that fewer people are using NEAR’s network. At the same time, It’s price followed this trend, dropping to $5.11 at the time of writing, according to CoinMarketCap. When both network activity and price go down, it often shows that investors are losing interest. Without new demand, prices could continue to struggle.
Selling Pressure From Traders
Adding to the problem, derivative traders have been selling NEAR heavily. According to Coinglass, the long-to-short ratio for it is 0.8995. This shows that more traders are betting on NEAR’s price going down than up. In addition, Open Interest, which tracks the total value of active contracts, dropped by 6.8% in the last 24 hours, reaching $237.39 million. Many traders who took long positions (expecting prices to rise) were liquidated, with $901,510 worth of contracts being closed. This trend highlights the strong selling pressure it is facing.
Signs of a Possible Rebound For NEAR
While the current situation looks tough, there are hints that the selling trend might be losing strength. For example, the Average Directional Index (ADX), which measures the strength of market trends, dropped to 17.85. A lower ADX often signals that the current trend is weakening. If this trend continues, NEAR’s price could stabilize, and we might see a recovery in the coming days. This provides a glimmer of hope for traders and investors.
Source: Trading View What’s Next for NEAR?
Looking at the weekly chart, NEAR seems to be trading within a symmetrical triangle pattern. This pattern shows that the price is narrowing between a strong support level and resistance. Usually, this kind of pattern leads to a big price move. If it continues to face selling pressure, it could drop further to the $4.625 support level. However, if buyers step in and demand increases, it could break through its resistance and aim for $10 in the medium term. This current downtrend might just be setting the stage for a major recovery. As the market shifts, it could surprise investors with a strong rebound.
VR Soldiers’ Thoughts About
As the VR Soldiers, we believe NEAR’s current challenges could turn into opportunities. While the bearish trend is still present, signs of slowing selling pressure and historical patterns suggest a possible recovery with its price now being around $5.202. moreover, Investors should watch the $4.625 level for potential buying opportunities. As always, remember to do your own research—this is not financial advice.
Conclusion
NEAR is facing challenges, including declining active addresses and strong selling pressure. However, there are signs that the downtrend might be slowing. If it breaks out of its current trading pattern and demand picks up, it could aim for $10. For now, traders should stay cautious but keep an eye on these developments.
The post NEAR Struggles Amid Selling Pressure first appeared on The VR Soldier.
