July 23, 2024
Crypto

Crypto: NEAR Down 50%! Analysis of July 11, 2024


After a decline of more than 50%, Near is attempting a rebound upon reaching its support. Let’s examine together the future prospects for NEAR.

Logo Near fond rouge et bleu avec de parts et d’autres un ours rouge et un taureau bleu enragés. En haut de chacun, on peut voir la barre de pouvoir de chacun.

Situation of the Near Price

After hitting a low point at $0.97, the Near price started a bullish rally, propelling its price towards $4.6. It is at $2.7 that the crypto will benefit from buyer support, allowing Near to reach a new peak at $9. All of these fluctuations enabled Near to record a performance exceeding 800% in less than six months. It should be noted that these performances were fueled by the overall increase in the crypto market. Additionally, it should be noted that Near garnered real interest because it is indirectly associated with the star company Nvidia. Unfortunately, all good things come to an end. The Near price marked a 50% decline. The crypto has returned to a zone of interest identified around $4.3. Although a rebound attempt took place, a second wave of decline followed, bringing its price once again to this last support. The Near price now forms a double top, considered a market reversal pattern.

At the time of writing this article, Near is trading around $4.6. The crypto thus seems to attract buyer interest from its support. Nevertheless, the latter did not allow the crypto price to counter its short-term trend. Regarding the medium-long term structure of the crypto, it still seems bullish. However, the latest fluctuations of Near have brought its price below the 50-day and 200-day moving averages, which naturally casts doubt on the continuation of this trend. On the side of the crypto price dynamics, we can observe that it has significantly decreased, although it has slightly rebounded, as evidenced by the Near price itself and its oscillators. Therefore, all these elements illustrate a period of ongoing uncertainty for the Near price.

NEAR/USD Chart (1D)

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and mutual support around the financial markets in a professional and warm atmosphere.

Focus on Derivatives (NEAR/USDT)

The open interest on NEAR/USDT contracts was revised downwards, as was its underlying asset, demonstrating a decline in speculative interest. On the liquidation side, they are low but mostly from buyers. Associated with a mostly positive, although weak, funding rate, it can be deduced that the orientation of speculators remains mostly on the buyer’s side.

Open Interest / Liquidations & Funding rate NEAR/USDT

The liquidation heatmap of NEAR/USDT over three months shows that the liquidation zone around $4.8 has been crossed. It does not seem to have impacted the crypto demand, which continued to decline before rebounding later. Now, the most significant liquidation zones are above the current Near price. The closest can be noted around $5.6. Not counting the subtle zone close to $6.7, the zones between $7.6 and $8.2 can also be highlighted. Approaching the price to these levels could trigger massive orders, increasing the risk of a period of heightened volatility for the crypto. These zones can thus represent a crucial point of interest for investors.

NEAR/USDT Liquidation Heatmap (3 months)

Hypotheses for the Near Price

  • As long as the Near price stays above $4.3, a return to $5.4 or even $6 can be anticipated. Breaking this resistance could open the door to $7.5, then higher to $9. At this stage, it would represent an increase of over 94%.
  • If the Near price fails to stay above $4.3, buyer support could be envisaged between $3.6 and $3.1. The next support to consider, if the downward movement continues, would be $2.75. At this stage, it would represent a decline of nearly 40%.

Conclusion

After an impressive rise, Near underwent a significant correction. Although a recent rebound is observed, the short-term trend remains uncertain, and the overall dynamics seem weakened. Thus, it will be crucial to closely monitor the price reaction to different key levels to confirm or invalidate the current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Lastly, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly according to other more fundamental factors

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Family Trading

Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content, and support around financial markets including cryptocurrencies, with Elie FT, an investor and passionate trader in the crypto market, by its side.

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