NEAR Protocol’s recent price decline has raised concerns among investors, with its profitability halved since early July. The reduction in open interest and investor pessimism suggests challenging market conditions ahead.
Points
- NEAR’s profitability has halved since early July.
- The price has fallen below the 23.6% Fibonacci retracement level.
- Open Interest in NEAR has dropped by 20% in the past week.
- Investors are advised to monitor key technical indicators and price levels.
- Potential recovery depends on reclaiming key support levels.
NEAR Protocol, a prominent cryptocurrency project, is currently facing significant market challenges. The recent decline in NEAR’s price has sparked concern among its investors, with profitability halving since the start of July. This rapid decrease has made it difficult for NEAR to sustain its earlier gains, and growing investor pessimism is likely to further impact its market performance.
What is Causing the Selling Pressure?
The recent price drop has led to a notable reduction in Open Interest for NEAR. Open Interest, which represents the total number of outstanding derivative contracts, has fallen from $213 million to $170 million last week—a 20% decline. This reduction is primarily attributed to traders closing their positions as the price decreased, leading to reduced overall market activity.
Technical Analysis and Key Levels
At the time of writing, NEAR’s price stood at $5.34, falling below the 23.6% Fibonacci retracement level. Despite this drop, the daily close had not yet occurred, leaving room for NEAR to potentially bounce back to this level. If the price fails to rise above this point, NEAR could fall below $5.00 and possibly descend to $4.39. Conversely, a positive market shift could see NEAR reclaiming the mentioned support level and initiating a recovery.
Technical Indicators to Watch
- MACD （Moving Average Convergence Divergence）: This indicator checks the level of conjunction and isolation between two SMA lines to identify changes in momentum. A bullish crossover could indicate a potential reversal.
- RSI （Relative Strength Index）: Measures the momentum and velocity of price fluctuations, indicating overbought or oversold conditions. An RSI reading below 30 typically signals that a security is oversold, while a reading above 70 indicates it is overbought.
Potential Investor Actions
Investors should consider the following actions to navigate the current market conditions:
- Monitor daily closing prices for signs of recovery or further decline.
- Evaluate technical indicators such as MACD and RSI for bullish or bearish trends.
- Observe changes in Open Interest to gauge market activity.
- Prepare for possible price fluctuations around key Fibonacci retracement levels.
Conclusion
NEAR Protocol is currently under significant selling pressure, which could influence its short-term price movements. Investors are advised to proceed with caution and keep a close watch on these market developments. Monitoring key technical indicators and support levels will be crucial in assessing the potential for a recovery or further decline.
解説
- NEAR Protocol is experiencing significant market challenges with a sharp decline in profitability and price.
- A 20% reduction in Open Interest indicates traders are closing positions, reducing overall market activity.
- Key technical indicators such as MACD and RSI are essential for assessing market trends and potential reversals.
- Investors should monitor daily closing prices and key support levels to navigate the current market conditions.
- The potential for a price recovery depends on reclaiming critical support levels and observing positive technical signals.