NEAR Protocol’s price is approaching critical support levels as investor pessimism increases, potentially leading to further declines.
Points
- NEAR price falls to $5.63, losing half of its early July gains.
- Bearish technical indicators suggest further downward momentum.
- Open Interest drops significantly, indicating reduced market activity.
NEAR Faces Selling Pressure
NEAR Protocol’s price has declined to $5.63, losing half of its gains from early July. This drop is compounded by growing investor pessimism, which could result in further price declines. The Moving Average Convergence Divergence （MACD） indicator recently noted a bearish crossover, signaling increased selling pressure.
Decline in Open Interest
Open Interest in NEAR has dropped by 20% over the past week, from $213 million to $170 million. This decline reflects traders closing positions as the price falls, reducing overall market activity. Open Interest is a measure of the total number of outstanding derivative contracts, and a decrease often signals reduced investor confidence.
NEAR Price Prediction
Currently, NEAR is holding above the 23.6% Fibonacci Retracement line, known as a bear market support floor. However, if the selling pressure continues, NEAR could fall below this support, potentially dropping to $4.39. Conversely, if the support holds and the market improves, NEAR could rally to $6.08, flipping the 38.2% Fib line into support.
解説
- Technical Indicators: Understanding MACD and Fibonacci Retracement levels helps predict market trends and potential support or resistance zones.
- Investor Sentiment: Declines in Open Interest and increased pessimism highlight the importance of market sentiment in influencing price movements.
- Price Levels: Identifying critical support and resistance levels is crucial for anticipating potential price movements and making informed trading decisions.