NEAR Protocol [NEAR] has been navigating choppy waters, with its price caught in a downtrend across higher timeframes. Despite occasional bullish flips in market structure, the overall outlook remains precarious, particularly as the token struggles to maintain key support levels.
Bulls Seek Refuge At $3.85 Support
In recent weeks, NEAR bulls have found some respite at the $3.85-level, which aligns with the 78.6% Fibonacci retracement level. This level, drawn from the rally between $2.45 and $9 in February and March, has been a critical battleground for the bulls. Despite a bounce from this support last week, the token’s upward momentum was short-lived, with a rejection at the $5.25 mark.
This rejection and the subsequent price drop underscore the fragility of NEAR‘s bullish attempts. The inability to flip the $5.25 level into a solid support zone has left the market in a state of uncertainty, with the daily RSI dipping below the neutral 50 mark, indicating a shift in momentum back towards the bears.
On-Balance Volume (OBV) Signals Persistent Selling Pressure
A closer look at the On-Balance Volume (OBV) reveals a consistent downtrend, reflecting steady selling pressure despite the token’s attempts to rally. This downward trajectory in the OBV is a concerning sign for NEAR, suggesting that any bullish structure seen on the charts may not hold unless a significant shift in buying volume occurs.
The situation is compounded by the declining Open Interest in the Futures market, which indicates a bearish sentiment among traders. Despite NEAR’s price trading above a key support level, the sustained selling pressure suggests that the bears remain firmly in control.
Spot CVD Offers a Glimmer of Hope
Interestingly, while NEAR’s price has struggled, the spot CVD (Cumulative Volume Delta) has been on the rise, indicating an increase in buying pressure. This divergence between price action and CVD offers a potential silver lining for the bulls, suggesting that there might be enough buying interest to defend the $4 support zone.
However, for NEAR to regain its bullish footing, several factors must align. Investors will be watching closely for a range formation around the $4 zone and a gradual rise in the OBV, signaling potential accumulation. Without these developments, the higher timeframe outlook for NEAR remains bleak.
NEAR Protocol finds itself at a critical juncture, with its price teetering on the edge of key support levels. While the bullish structure on the charts provides some optimism, the persistent selling pressure and bearish market sentiment cast a shadow over the token’s prospects. Traders and investors alike will need to keep a close eye on the $3.85 support level and the broader market dynamics to gauge NEAR’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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