Cryptocurrency markets have recently been marked by significant rallies, with several altcoins doubling or tripling in value. However, these trends are not indefinite, and even in strong market phases, substantial drops in value can occur. Altcoins, in particular, can see reductions in value by half or more, as history has shown in previous market cycles.
NEAR’s Struggle and Recovery
NEAR Coin, notably impacted by the FTX collapse, saw a quick offloading by investors, resulting in a stark decrease in value. Unlike SOL Coin, NEAR did not manage a substantial recovery, partly due to the potential emergence of various competitors. Nonetheless, after a prolonged period of decline, NEAR Coin recently achieved a notable 38% increase within the span of 24 hours, catching investors and bears by surprise.
The unexpected rise followed three consecutive days of declines, which had suggested a steady downtrend. The rebound was reinforced by a liquidation of short positions totaling $2.23 million, which prompted a shift to a positive funding rate in futures markets, averaging 0.0670%. Concurrently, the network’s total value locked (TVL) saw a 22.5% increase, signaling growing confidence in the asset.
Future Price Movements for NEAR Coin
While NEAR’s price has increased, it is yet to establish strong support above a critical resistance level. Currently, bulls face a barrier at $5.6, but if overcome, the price may ascend to $6.5. The futures market indicates that bears might approach with caution, which could inadvertently fortify the ongoing uptrend.
Investors should, however, proceed with caution due to the Relative Strength Index (RSI) indicating an oversold condition. External factors like upcoming US data or sudden profit-taking in the BTC market could aid bears in pushing NEAR’s price down. If the RSI remains high and the price stays above $5.6, the outlook is positive, but a fall below this threshold could see prices retract to $4.85 or lower.