NEAR Protocol [NEAR] has stayed on the bullish side of the market as it continues to rise, with the altcoin pulling a 14% surge.
While the data points to a strong chance that NEAR rallies further, a structural gap on the chart still signals the risk of a bearish decline should selling pressure surface, even as the altcoin retains room for another upswing.
NEAR’s gains track rising on-chain capital
Several liquidity shifts across the market over the past day have driven NEAR’s recent gain.
One of these is the surge in Total Value Locked (TVL), a measure that in some ways reflects the on-chain capital and overall health of the token. At the time of writing, TVL had grown by roughly $19.6 million between the 13th and 15th of June, pushing the total to $168.47 million.
The surge implies that the protocol sat in a healthy state and that investor confidence has gradually built, with inflows being locked up as holders anticipate decent price performance over the near to long term.
The spot market has not mirrored that buy sentiment perfectly, as Netflow data showed more selling than buying of NEAR over the past day, with a $1.22 million difference that remains a key concern for whether the price can stay sustainable.
A major structural gap sits above price
Beyond the spot selling, the major concern is the resistance supply sitting ahead of price, which could weigh on NEAR significantly.
At the time of writing, NEAR’s recent rally had pushed the altcoin into a supply-side fair value gap (FVG). The gap often houses selling pressure that could drag on price if the buying momentum behind the rally remains minimal.
Should the supply side exert that bearish pressure, the asset could drop toward two key levels below, the zone between $2.13 and $2.05 on the chart, where buy orders may sit. Further selling momentum could then drive NEAR back to the demand-side FVG.
However, invalidating the supply-side FVG could send price as high as the $2.97 and $3.08 levels, where it could face slight pressure from traders in that zone.
Momentum signals favor NEAR’s upside
The chances of NEAR extending its rally to the upside remain high, with several valid signals pointing toward that outcome.
At the time of writing, the moving average convergence divergence (MACD), which tracks the altcoin’s momentum, showed a high chance of another leg up. The blue MACD line sat close to crossing above the orange signal line, a move often associated with an upside rally.
The most notable signal of continued upside comes from the Chaikin Money Flow (CMF), a key indicator that tracks whether buying or selling volume dominates the market.
At the time of writing, the CMF had surged, implying that buy volume has outweighed sell volume. CoinGlass reported spot volume at $122.85 million and futures volume at $732.30 million.
Final Summary
- NEAR climbed 14% as more capital flowed into the protocol, a sign that investor confidence has been building rather than fading.
- Despite the gains, signs of selling in the spot market leave the rally’s staying power in question, making the days ahead the real test.