NEAR Protocol’s recent price action shows significant bearish pressure, with the cryptocurrency falling 25% over the past month. In just the last 24 hours, NEAR dropped another 2.8%, reflecting strong selling momentum. Although a bullish triangle pattern on NEAR’s daily chart suggests potential for a rebound, the ongoing sell pressure raises concerns about whether these positive signals can withstand the bearish wave.
Bullish Triangle Pattern Hints at Potential Recovery
On the daily chart, $NEAR has formed a classic bullish triangle pattern, characterized by a horizontal support line and a rising diagonal resistance. This formation typically signals a potential for upward movement if the support level holds. For NEAR, the critical support stands at $3.520; holding this level could trigger a bounce with targets at $5.606 in the short term and, if momentum builds, $8.520. However, if bearish sentiment prevails, NEAR risks a drop to its January 2024 low of $2.450.
Bearish Indicators and Rising Sell Pressure
Several bearish indicators continue to weigh on NEAR’s outlook. Recent data shows a significant rise in long liquidations, outpacing short liquidations by over $1 million. This imbalance indicates strong bearish sentiment, as many traders appear to be anticipating further declines.
Additionally, NEAR’s Open Interest—a measure of interest in active futures contracts—has decreased by 1.65% to $185.65 million. Such a decline underscores weakened market confidence in NEAR, especially as technical indicators further reinforce the negative outlook. The Relative Strength Index (RSI) sits at 30.69, close to the oversold threshold of 30; a further dip could lead to increased selling. Meanwhile, NEAR’s Parabolic SAR (Stop and Reverse) shows dotted markers above the price candles, another bearish signal reflecting the mounting sell pressure.
Outlook for NEAR: A Challenging Path Ahead
The path forward for NEAR appears difficult, as sell pressure, technical metrics, and market sentiment all point to further downside risk. While the bullish triangle pattern offers a glimmer of hope, the overwhelming bearish indicators suggest that NEAR may soon test its 2024 low of $2.450. Regaining bullish momentum from that level will likely require a significant shift in market sentiment and renewed buyer interest.
