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Crypto: Almost Down 50%! Analysis July 11, 2024
After a decline of more than 50%, Near is attempting a rebound once it reaches its support. Let’s examine together the future prospects for NEAR.
Price situation close
After touching a low point at $0.97, the Price close has started a bullish rally, pushing its price towards $4.6. It is at $2.7 that the cryptocurrency will benefit from the support of buyers, allowing Near to reach a new peak at $9. All these fluctuations have allowed Near to record a performance of more than 800% in less than six months. It should be noted that these performances have been fueled by the overall increase in the cryptocurrency market. In addition, it should be noted that Near has attracted real interest because it is indirectly associated with the star company Nvidia. Unfortunately, all good things come to an end. Near price has seen a 50% decline. The cryptocurrency has returned to an area of interest identified around $4.3. Although there was an attempt to bounce, a second wave of decline followed, which brought its price back to this last support once again. Near price is now forming a double top, which is considered a market reversal pattern.
At the time of writing, Near is trading at around $4.6. The cryptocurrency thus seems to be attracting buyer interest from its support. However, the latter has not allowed the cryptocurrency price to counteract its short-term trend. As for the medium-long term structure of the cryptocurrency, it still seems bullish. However, Near’s latest fluctuations have brought its price below the 50-day and 200-day moving averages, which naturally casts doubt on the continuation of this trend. From the dynamics side of the cryptocurrency’s price, we can observe that it has significantly decreased, although it has bounced slightly, as evidenced by the Near price itself and its oscillators. Therefore, all these elements illustrate a period of continued uncertainty for the Near price.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a trainer at Family businessa community of thousands of proprietary traders active since 2017. There you will find Live, educational content and mutual support on the financial markets in a professional and warm atmosphere.
Derivatives Focus (NEAR/USDT)
Open interest on NEAR/USDT contracts has been revised lower, as has its underlying asset, demonstrating a decline in speculative interest. On the liquidation side, they are low but mostly from buyers. Coupled with a mostly positive, albeit weak, funding rate, it can be deduced that speculators’ bias remains mostly on the buyer side.
The three-month NEAR/USDT liquidation heat map shows that the liquidation zone around $4.8 has been breached. It does not seem to have had an impact on cryptocurrency demand, which continued to decline before recovering later. Now, the most significant liquidation zones are above the current Near price. The closest one can be noticed around $5.6. Not counting the thin zone near $6.7, the zones between $7.6 and $8.2 can also be highlighted. Approaching these levels could trigger massive orders, increasing the risk of a period of high volatility for the cryptocurrency. These zones can therefore represent a crucial point of interest for investors.
Hypothesis for the price near
- As long as the Near price remains above $4.3, a return to $5.4 or even $6 can be expected. Breaking this resistance could open the door to $7.5, then higher to $9. At this point, it would represent an increase of over 94%.
- If Near price fails to stay above $4.3, buyer support could be expected between $3.6 and $3.1. The next support to consider, if the downside move continues, would be $2.75. At this stage, it would represent a decline of almost 40%.
Conclusion
After an impressive rise, Near has undergone a significant correction. Although a recent rebound is observed, the short-term trend remains uncertain and the overall dynamics seem weakened. Therefore, it will be crucial to closely monitor the price reaction at different key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, we recall that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.
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Family business
Family Trading is a community of proprietary traders active since 2017 that offers live sessions, educational content and support on financial markets, including cryptocurrencies, with Elie FT, an investor and trader passionate about the cryptocurrency market, at its side.
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