CoinJie.com reports:
The consolidation phase near the “Agreement” indicates a possible downturn.
However, the rebound may allow NEAR to continue trading within its consolidation channel.
The bearish trend is evident in all timeframes, with a 6.00% decline in the past month and a 7.85% decline weekly.
It has entered another downward phase, declining by 1.82% in the past 24 hours.
Although a small rebound may keep NEAR in its consolidation phase, the outlook for a significant price increase remains uncertain.
NEAR is about to face a decline.
Since October 2nd, NEAR has been in a consolidation phase ranging from $5.005 to $4.561. While this phase typically indicates accumulation, in the case of NEAR, it suggests distribution is imminent.
If this distribution occurs, NEAR may target two potential price levels: the first being $3.833, and if selling pressure persists, a further decline to $3.494.
If the expected distribution does not materialize, NEAR may remain within its current trading range.
Therefore, AMBCrypto has reviewed other on-chain indicators to determine the next move for NEAR.
Trader imbalance indicates active sellers.
Coinglass indicates a significant imbalance between short-term and long-term liquidations in the past 24 hours.
Out of $388,220 worth of NEAR liquidated in the market, $377,360 came from long positions, while only $108,600 came from short positions.
This imbalance suggests a potential downtrend as the side with lower liquidation value, in this case the shorts, often dominates the market direction.
Furthermore, the weighted funding rate has dropped significantly, indicating that short positions are paying long positions in a generally bearish sentiment.
The weighted funding rate represents the average funding rate across exchanges, adjusted according to the size of open positions, reflecting the cost of holding long or short positions in perpetual futures contracts.
If the imbalance in liquidations favors bearish traders and the weighted funding rate continues to decline, NEAR may further decline from its current trading range.
Faint signs of a rebound.
In the ongoing bearish sentiment, there is a possibility of a rebound from the support level of the consolidation channel, allowing NEAR to expand its trading range within the channel.
This potential recovery is indicated by the Parabolic SAR (Stop and Reverse), which forms dots below the NEAR price, indicating a bullish outlook in the market.
Read more:
NEAR Protocol’s [NEAR] price prediction for 2024-2025
This suggests that some traders are actively buying NEAR at current levels.
If these dots continue to form, NEAR may maintain its position within the consolidation phase, and if market sentiment changes positively, NEAR may also break out of the consolidation phase.
