The recent increase in Bitcoin prices has positively impacted the cryptocurrency market. As the surge in digital currencies continues, certain projects have extended the upward trend that commenced last week and are currently gaining momentum. Unlike some of their competitors, these projects continue to strengthen by maintaining their upward trajectory.
NEAR Capital Inflow Rise
Among the projects benefiting significantly from the recent market rise is NEAR. The sharp increase in the Chaikin Money Flow (CMF), which measures the cash flow entering and exiting the market for specific cryptocurrencies, signaled a positive trend for NEAR. This surge in capital inflow suggests a rising demand, reflecting an increased interest in the project.
The heightened demand for NEAR can influence its price positively, indicating a substantial rise in purchases by investors. With the ongoing positive market sentiment, the value of NEAR is likely to continue its upward movement.
Short Position Liquidations
In the last 24 hours, liquidations of short positions in NEAR have surpassed almost $1 million. This significant amount of liquidations may compel investors with short positions to reconsider their strategies.
The increase in liquidations not only forces abandonment of short positions but also contributes to price stability, potentially leading to further upward momentum for NEAR.
Key Takeaways for Investors
– Monitor NEAR’s Chaikin Money Flow (CMF) for signs of increasing demand.
– Watch liquidation trends, as high liquidations can indicate imminent price movements.
– Pay attention to the $6.06 resistance level, which can turn into support and lead to new highs.
– Be cautious of a potential drop to the $5.20 support level if the price doesn’t hold above key levels.
NEAR Price Outlook
Following a substantial 37% rise in the past week, NEAR’s price was around $6.20 at the time of writing. The altcoin solidified this increase by surpassing the $6.06 resistance level, aligned with the 23.6% Fibonacci retracement level. This level could convert into support, opening the path for further gains.
However, if NEAR fails to close above this level, the price may reverse direction. A potential downward trend could push NEAR’s price down to a critical support level at $5.20, posing risks for investors.