NEAR slides 6% in a day – Here’s why traders expect more losses
NEAR was unable to hold on to $4.30 in the face of recent selling pressure and could slide toward $2.81 in the coming weeks.
NEAR Protocol [NEAR] was one of the “most viewed coins” on the 2nd of November, according to CoinGecko on X. The AI-native platform’s utility token has shed 6.48% in 24 hours, with a 15.7% decrease in daily trading volume.
The short-term losses were part of the 32% price correction NEAR saw in the past three weeks. A wider market sell-off has prompted the altcoin’s descent from $4.72 to $4.07.
Earlier, the $4.30 and $4.60 levels were pointed out as key levels for the bulls to defend. Their defense has gone awry, and now the token’s price action is ripe for deeper drawdown.
NEAR was also in the news recently when Premia Labs was drained of $464k. The stolen funds were bridged from Arbitrum to Ethereum, then cashed out through NEAR Intents and Chainflip.
NEAR maintains a long-term bullish trend
On the weekly timeframe, NEAR has a bullish structure. It had broken the previous swing high at $3.34 comfortably in September and was retracing the move at the time of writing.
The weekly RSI remained above neutral 50, but the OBV has been unable to climb past the May highs. This indicated sizeable selling pressure earlier in the year.
Demand has not been strong enough to undo the trends from earlier this year.
While the weekly timeframe was bullish, a pullback toward the key Fibonacci retracement levels at $1.91-$2.81 was a possibility.
Bulls must endure some turbulence in the coming days
The 1-day structure was bullishly anchored on the $4.30 swing low. The 4-hour chart above had been bullish, but the lack of a rebound from the $4.50 demand zone over the past two weeks signaled bears were winning.
The events of the past week spurred a swift price drop below the two key levels and a retest of the $4.50 zone as resistance.
Swing traders can look to go short. Invalidation would be a rally above $4.808, while bearish targets would be $3.42, $2.81, and $1.94, the weekly Fibonacci retracement levels.
Final Summary
- NEAR was one of the most viewed tokens, according to CoinGecko, even as the altcoin retested a local supply zone and faced steady losses.
- The altcoin was unable to hold on to $4.30 in the face of recent selling pressure and was likely to slide further toward $3.42 and even $2.81 next.
