The NEAR cryptocurrency recently experienced a notable downturn in its price, following a significant peak in its trade volume on March 3rd. Although the Relative Strength Index (RSI) has seen a decrease, it stays above the typically overbought level. Current patterns in the price chart suggest a potential downward trend with the looming possibility of a death cross formation.
Transaction Trends and Price Response
NEAR’s daily transaction count soared to over 6 million on March 3rd, marking a two-week high since December 29, 2023, and the second-largest in the protocol’s history. With transactions rising from February 1st to March 3rd, NEAR’s value shot up by almost 69%, indicating a close relationship between transaction volume and price during this phase. Despite the transaction volume slowing down, NEAR’s price continued its ascent, jumping by more than 116% up to March 14, suggesting a decoupling from its fundamental indicators.
Technical Indicators and Potential Outcomes
The RSI levels for NEAR remained exceedingly high between February 29th and March 13th, which mirrored the period of its price surge. Subsequently, a price correction ensued, and NEAR dropped substantially within four days. The RSI’s slight decline from 82 to 78 hints at a reduction in the rate of price growth, possibly indicating an imminent market correction due to profit-taking by investors.
The Exponential Moving Averages (EMAs) used as trend indicators now suggest an impending shift from an upward to a downward trend. This forecast aligns with the potential bearish signals from earlier price chart analysis.
The analysis of NEAR’s price dynamics points to $5.13 as a critical support level. A break below this threshold may see the price slide towards $3.64, implying a 45% drop. Conversely, a trend reversal could propel NEAR towards the $9 mark, representing a potential 35% gain.