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- The NEAR protocol broke below the 50-day moving average, turning bearish after a bullish week.
- The significant decline in the RSI towards the oversold territory and the formation of a lower low highlighted the strong selling pressure.
Close to the protocol [NEAR] It recently saw a bearish reversal, which has investors worried about a potential pullback because the previous week was strongly bullish.
The 50-day moving average (blue line) acts as a dynamic support and resistance level. The price broke below this line and turned bearish.
Source: Trading View
The 200-day moving average (red line) is positioned above the price at the time of publication, reinforcing a resistance area that could limit the upward movement.
The Relative Strength Index (RSI) bands indicated that the price has exited the overbought zone and is heading towards or possibly entering the oversold zone.
This indicates that selling pressure was significant, causing prices to fall.
Source: Trading View
Bearish signals dominate
This downtrend is further highlighted by the recent Lower Low (LL) which was well below the previous lows, indicating more selling pressure to come.
MACD buy and sell signals (MacdSE and MacdLE) have shown frequent shifts in momentum. Recent signals have indicated more selling pressure (as indicated by MacdSE), which means that the bearish momentum is very strong.
However, there are more double bottoms (which indicate potential reversals from a downtrend) than double tops. This could mean that there are underlying volatility and attempts at price recovery.
Source: Santiment
The coincidence of NEAR’s social volume and dominance spikes suggests a strong consensus or reaction among traders. NEAR Derivatives market It offers no solace.
Trading volume has fallen by more than 30% in the past 24 hours. Open interest rates also fell by 4%, which means traders are closing their positions due to bearish signals.
Realistic or not, here it is NEAR’s market capitalization in terms of BTC
While overall market activity declined, some metrics on major stock exchanges e.g Binance [BNB] The OKX indicator indicated pockets of bullish behavior or speculative attempts to capture potential bounces.
Source: Coinglass
Since the price is below the Ichimoku Cloud and the major moving averages, and given the dominance of short trades in recent volatility, a bullish reversal does not seem possible in the short term.
