- NEAR might be close to a major bullish recovery
- NEAR’s volume sees an uptick, but bears prove dominant
Imagine finding an oversold cryptocurrency that is native to a layer 1 blockchain and whose network already has five years of runtime. This can be considered as NEAR’s latest situation, which has been on a bearish trend for most of November so far. Interestingly, its volume registered a significant uptick in the last three days.
Read NEAR’s price prediction 2023-24
NEAR’s on-chain volume, which registered its highest peak on 9 November, has been on a decline ever since. It bottomed out on 17 November and has been gradually gaining traction. The uptick notably gained momentum in the last two days.
Why was this observation so important? The timing of the volume increase suggested that NEAR could experience an increase in buying pressure. This was because the cryptocurrency was already deep in oversold territory, where it was more likely to experience a wave of buying pressure.
Investors buying the dip could also be the reason for the volume increase but despite this, NEAR’s price action continued on its downtrend. This was because the volume or incoming buying pressure was not enough to offset prevailing sell pressure.
Can NEAR garner enough bullish momentum for a sizable bounce back?
NEAR could have a chance at a sizable bullish bounce if it can secure enough volume. There was a slight increase in social dominance, especially between 20 and 21 November. This was unsurprising, however, considering that it was among the top trending cryptocurrencies.
Although it achieved a higher social dominance, NEAR’s market sentiment failed to pivot. Its weighted sentiment metric kicked off the week on a downtrend after the price pushed into oversold territory late last week and failed to recover. This may have spoofed investors into selling, and the prevailing bearish market conditions contributed to the bearish sentiment.
The Binance funding rate also registered a bit of a slide. This was confirmation of low demand from the derivatives market.
"Among Layer 1 protocols, NEAR is in an excellent position to thrive despite the very difficult market conditions"
"Our 5+ years of runway will help the NEAR ecosystem weather the bear market, which is likely to last for some time"
— NEAR Protocol | Create Without Limits (@NEARProtocol) November 21, 2022
Although it is deeply oversold, NEAR might be one of the best cryptocurrencies for the next bullish wave. Investors should particularly be on the lookout for a potential mid-week bounce. A 50% plus bounce from the press time levels might be on the cards, especially if the market conditions allow.