NEAR Protocol’s Recent Surge
In recent market activity, Near Protocol (NEAR) has experienced substantial growth, with daily increases of 5.52% and weekly gains of 10.19%. At the time of writing, NEAR was trading at $4.46. This surge is linked to NEAR’s efforts to overcome a month-long bullish descending channel, although it continues to encounter strong selling pressure at this resistance level.
The bullish sentiment among both whales and retail investors has been notable. This rally raises questions about its sustainability and the potential for a breakout. The key factor holding NEAR’s potential rise to $5.34 is its ability to break through the resistance at $4.476.
Technical Analysis and Market Patterns
At present, NEAR is trading within a month-long descending channel, a pattern that dates back to May. This pattern, characterized by its rectangular shape with upper and lower bounds, typically precedes a rally after the asset bounces off the lower boundary. NEAR has recently rebounded from the support zone, with notable wicking at the lower support level of $3.076. Wicking signifies a rejection of lower prices, indicating that buyers have regained control and are pushing the price upward, hinting at potential upward momentum.
However, NEAR faces a significant hurdle at the major resistance level of $4.476. For the recent rally to sustain, buying pressure must surpass selling pressure. If buyers can dominate sellers, NEAR is poised to break out of the channel and ascend to a new high of $5.343. Otherwise, it may continue to trade within the descending channel, potentially prolonging this pattern for weeks.
Short Sellers Under Pressure
Further analysis indicates a significant likelihood that the $4.476 resistance level will be breached, as buying pressure has intensified recently. This surge in buying activity began on August 21st, leading to a sharp increase in liquidations among traders who bet against NEAR. Over the past 24 hours, $182.65k worth of short positions have been eliminated from the market. Such events demonstrate growing buying interest and the emergence of long traders as selling pressure diminishes.
Since August 20th, the OI-Weighted Funding Rate has remained positive, steadily increasing to 0.0066% at press time. This indicates that long positions are prevailing, with long traders compensating short sellers, a sign of strong buyer confidence and potential for further upward momentum. If retail buying pressure persists, it could overpower the existing selling pressure at the resistance level of $4.476.
Whale Activity and Market Confidence
Data from DeFiLlama indicates a surge in buyer confidence, as evidenced by the rising Total Value Locked (TVL), which stood at $213 million at press time. An increase in TVL suggests that more NEAR is being invested in the protocol’s ecosystem. Typically, such an influx predicts a continued rise in price, reflecting sustained investor interest and market strength.
Whales, or large investors, have maintained buying pressure, further supporting the bullish sentiment. This activity is crucial as it often signals confidence in the asset’s long-term potential. The combination of whale activity and retail investor interest creates a robust foundation for NEAR’s potential breakout and sustained growth.
Conclusion
In conclusion, NEAR Protocol’s recent market performance has been impressive, with significant daily and weekly gains. The key to sustaining this rally lies in overcoming the resistance at $4.476. Technical analysis suggests that a breakout could lead to a new high of $5.343. The intensified buying pressure, positive funding rates, and increased Total Value Locked all point to a bullish outlook for NEAR. However, the market remains dynamic, and continued monitoring of buying and selling pressures will be essential to gauge the sustainability of this upward trend.