CoinJiawang reported:
The consolidation phase nearing the Protocol indicates a potential drop.
However, a rebound may allow NEAR to continue trading within its consolidation channel.
The bearish trend is evident across all timeframes, with a 6.00% drop in the past month and a 7.85% drop weekly.
It has entered another descending phase, dropping 1.82% in the past 24 hours.
Although a minor rebound may keep NEAR in its consolidation phase, the prospect of a significant price increase remains uncertain.
NEAR is poised for a decline.
Since October 2nd, NEAR has been in a consolidation phase ranging from $5.005 to $4.561. While this phase typically indicates accumulation, in the case of NEAR, it suggests distribution is imminent.
If this distribution occurs, NEAR may target two potential price levels: the first being $3.833, with a further decline to $3.494 if selling pressure persists.
If the expected distribution does not materialize, NEAR may stay within its current trading range. Therefore,
AMBCrypto has reviewed other on-chain indicators to determine NEAR’s next move.
Imbalance in trader losses indicates active sellers.
Coinglass states that there is a significant imbalance between short-term and long-term liquidation in the past 24 hours.
Out of the $388,220 worth of NEAR liquidated in the market, $377,360 came from long positions, while only $108,600 came from short positions.
This imbalance suggests a bearish trend in the market, as the side with lower liquidation amount, in this case the shorts, often dominates the market direction.
Furthermore, the weighted funding rate has significantly decreased, indicating that short positions are paying long positions amidst the prevalent bearish sentiment.
The weighted funding rate represents the average funding rate across exchanges, adjusted based on the size of open positions, reflecting the cost of holding long or short positions in perpetual futures contracts.
If the imbalance in liquidation favors bearish traders and the weighted funding rate continues to decline, NEAR may further decline from its current trading range.
Faint signs of a rebound.
In the ongoing bearish sentiment, there is a possibility of a bounce from the support level of the consolidation channel, allowing NEAR to expand its trading range within the channel.
This potential recovery is indicated by the Parabolic SAR (Stop and Reverse) forming dots below the NEAR price, suggesting a bullish outlook for the market.
Read
NEAR Protocol’s [NEAR] price prediction
2024–2025
This indicates that some traders are actively buying NEAR at current levels.
If these dots continue to form, NEAR may hold its position in the consolidation phase, and if the market sentiment turns positive, NEAR may also break out of the consolidation phase.
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