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

After a drop of over 50%, Near is trying to rebound after reaching support. Let’s take a look at the future prospects for NEAR together.

Close to price situation

After reaching a low of $0.97, the price of Near began a bullish rally, pushing its price towards $4.6. The cryptocurrency will benefit from support from buyers at $2.7, which will allow Near to reach a new high of $9. All of these swings have allowed Near to record results of over 800% in less than six months. It should be noted that these results were driven by the overall growth in the cryptocurrency market. It should also be noted that Near has attracted real interest since it is indirectly linked to the star company Nvidia. Unfortunately, all good things must come to an end. The price of Near has seen a 50% drop. The cryptocurrency has returned to the zone of interest identified around $4.3. Although there was an attempt at a rebound, a second wave of decline occurred, which brought its price back to this last support. The price of Near is now forming a double top, considered a market reversal pattern.

At the time of writing, Near is trading at around $4.6. The cryptocurrency therefore seems to be attracting buyer interest thanks to its support. Nevertheless, the latter did not allow the price of the cryptocurrency to counteract its short-term trend. As for the medium-long-term structure of the cryptocurrency, it still seems bullish. However, Near’s recent volatility has caused its price to fall below the 50-day and 200-day moving averages, which naturally casts doubt on the continuation of this trend. As for the price dynamics of the cryptocurrency, we can see that it has fallen significantly, although it has rebounded slightly, as evidenced by the price of Near itself and its oscillators. Therefore, all these elements illustrate a period of ongoing uncertainty for the price of Near.

NEAR/USD Chart (1D)

This technical analysis was conducted in collaboration with Elie FT, an investor and cryptocurrency trading enthusiast. He is currently a trainer at Family tradea community of thousands of investors operating since 2017. There you will find live broadcasts, educational content and mutual support on the financial markets in a professional and warm atmosphere.

Focus on Derivatives (NEAR/USDT)

NEAR/USDT open interest has been revised down, as has its underlying asset, showing a decline in speculative interest. Liquidations are low, but mostly from the buyer side. Given the mostly positive, albeit weak, funding rate, we can conclude that speculators’ orientation remains mostly on the buyer side.

Open Interest / Liquidations & Funding Rate NEAR/USDT

The NEAR/USDT liquidation heatmap over the three months shows that the liquidation zone around $4.8 has been breached. This does not seem to have affected the demand for the cryptocurrency, which continued to fall before later rallying. The most important liquidation zones are now located above the current Near price. The closest can be seen around $5.6. Apart from the subtle zone near $6.7, zones between $7.6 and $8.2 can also be distinguished. Approaching these levels could trigger mass orders, increasing the risk of a period of increased volatility for the cryptocurrency. These zones could therefore be a key point of interest for investors.

NEAR/USDT Liquidation Heatmap (3 months)

Hypotheses for near price

  • As long as Near remains above $4.3, we can expect a move back to $5.4 or even $6. A break of this resistance could open the door to $7.5 and then higher to $9. At this stage, that would represent an increase of over 94%.
  • If Near fails to stay above $4.3, buyer support could be anticipated between $3.6 and $3.1. The next support to consider if the downtrend continues is $2.75. At this stage, that would represent a decline of almost 40%.

Application

After an impressive rally, Near has undergone a significant correction. While a recent rebound has been observed, the short-term trend remains uncertain and the overall momentum seems to be weakening. Therefore, it will be crucial to closely monitor price reactions at various key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant for potential “false” and “squeeze” market events in any scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also quickly evolve in line with other, more fundamental factors.

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Family trade

Family Trading is a community of self-employed traders, operating since 2017, offering live sessions, educational content and support on financial markets, including cryptocurrencies. At their side is Elie FT, an investor and cryptocurrency trading enthusiast.

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