The recent decline in the price of NEAR, a prominent cryptocurrency project, has sparked concern among its investors. NEAR’s profitability, which was promising at the start of July, has now diminished by half. This rapid decrease has made it challenging for NEAR to sustain its earlier gains. Investors’ growing pessimism is likely to further impact NEAR’s market performance.
What is Causing the Selling Pressure?
NEAR’s price may either remain stagnant or continue to drop due to shifting market conditions and negative investor sentiment. A recent bearish trend was indicated by the Moving Average Convergence Divergence (MACD) indicator, suggesting heightened selling pressure on NEAR investors. This technical signal points to the likelihood of ongoing downward momentum in the near term.
Furthermore, Open Interest in NEAR has experienced a notable reduction. Falling from $213 million to $170 million last week, this 20% decline is mainly attributed to the recent price drop. As the price decreased, many traders closed their positions, leading to reduced overall market activity.
How Much Will NEAR Be Worth?
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.
Potential Investor Actions
Investors should consider the following:
- Monitor daily closing prices for signs of recovery or further decline.
- Evaluate technical indicators such as MACD for bearish or bullish trends.
- Observe changes in Open Interest to gauge market activity.
- Prepare for possible price fluctuations around key Fibonacci retracement levels.
Overall, these indicators suggest that NEAR 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.