News
Crypto: NEAR down 50%! Analysis for July 11, 2024
After a decline of more than 50%, Near is attempting a rebound by reaching its support. Let’s take a look at the future prospects of NEAR.
Price situation close
After hitting a low of $0.97, the Near price has started a bullish rally, propelling its price towards $4.6. It is at $2.7 that the crypto will benefit from the support of buyers, allowing Near to reach a new high of $9. All these fluctuations have allowed Near to record a performance exceeding 800% in less than six months. It should be noted that this performance has been fueled by the overall rise of the crypto market. In addition, it should be noted that Near has generated real interest because it is indirectly associated with the Featured company NvidiaUnfortunately, all good things must come to an end. Near price has marked a 50% drop. The crypto has returned to an area of interest identified around $4.3. Although an attempt to bounce took place, a second wave of decline followed, bringing its price back to this last support once again. Near price is now forming a double top, considered a market reversal pattern.
At the time of writing, Near is trading around $4.6. The crypto thus seems to attract buyers’ interest from its support. However, the latter has not allowed the crypto’s price to counter its short-term trend. Regarding the crypto’s medium-long term structure, 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. On the crypto’s price dynamics side, we can observe that it has significantly decreased, although it has rebounded slightly, as evidenced by the price of Near itself and its oscillators. Therefore, all these elements illustrate a period of continued uncertainty for Near’s price.
The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. He is now a trainer at Family businessa community of thousands of owner traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (NEAR/USDT)
Open interest on NEAR/USDT contracts has been revised downwards, as has its underlying asset, demonstrating a decline in speculative interest. On the liquidation side, they are low but mostly come from buyers. Combined with a mostly positive, albeit low, funding rate, we can deduce that the orientation of speculators remains mostly on the buyer side.
The three-month liquidation heatmap for NEAR/USDT shows that the liquidation zone around $4.8 has been breached. This does not seem to have impacted demand for the crypto, which continued to decline before rebounding later. Now, the most significant liquidation zones are located above the current Near price. The closest can be noted around $5.6. Besides the subtle zone near $6.7, the areas between $7.6 and $8.2 can also be highlighted. The price approaching these levels could trigger massive orders, increasing the risk of a period of increased volatility for the crypto. These zones can thus represent a crucial point of interest for investors.
Assumptions for the near price
- As long as Near price remains above $4.3, a return to $5.4 or even $6 can be anticipated. Breaking this resistance could open the door to $7.5, then higher to $9. At this point, this would represent an increase of more than 94%.
- If Near price fails to hold above $4.3, a buying support could be seen between $3.6 and $3.1. The next support to consider, if the downward movement continues, would be $2.75. At this point, this would represent a decline of almost 40%.
Conclusion
After an impressive rally, Near has undergone a significant correction. Although a recent rebound is observed, the short-term trend remains uncertain and the overall momentum seems weakened. Thus, it will be crucial to closely monitor the price reaction at the various key levels to confirm or deny the current assumptions. It is also important to remain vigilant against possible “fake outs” and “market squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly depending on other more fundamental factors.
Optimize your Cointribune experience with our “Read to Earn” program! Earn points for each article read and access exclusive rewards. Sign up now and start earning benefits.
Click here to join “Read to Earn” and turn your passion for crypto into rewards!
Family business
Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content and support around financial markets including cryptocurrencies, with Elie FT, investor and trader passionate about the crypto market, at its side.
Disclaimer:
The contents and products mentioned on this page are in no way approved by Cointribune and should not be interpreted as engaging its responsibility.
Cointribune strives to provide readers with all relevant information available, but cannot guarantee its accuracy or completeness. Readers are encouraged to inform themselves before taking any action with respect to the company and to assume full responsibility for their decisions. This article does not constitute investment advice or an offer or invitation to purchase products or services.
Investing in digital financial assets involves risks.