NEAR under sell pressure – Buying opportunities may be found at these levels

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• Price action was below short and mid-term trend
• The exchange long/short ratio gave sellers slight leverage at press time

Near Protocol [NEAR], like a majority of the crypto-market, has been in a consolidation phase for the past few days. Interestingly, NEAR’s price action dominated the lower range of $1.800 – $1.996. Additionally, price action was below the short and mid-term trend, underscoring the increased sell pressure. 

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Meanwhile, Bitcoin [BTC] consolidated within the $26.8K – $28.8K. There has been a renewed higher-for-longer Fed rates narrative after taming the U.S banking crisis. This could delay BTC from breaching above its range. 

Price action below short and mid-term trend

Source: NEAR/USDT on TradingView

Since mid-March, NEAR has oscillated between $1.800 and $2.000, chalking a parallel channel pattern. However, over the past few days, the price action has predominantly been constricted to the lower range of $1.800 – $1.996 and faced rejection below the 50 MA of $2.110. 

A close below the channel’s mid-level of $1.996 could attract more downward pressure on NEAR’s price. As such, NEAR could drop to the channel’s lower boundary of $1.800 or extend to the low liquidity area below it before attempting a likely rebound. 

The move could offer potential buying opportunities at $1.800 if price action retests the support or the low liquidity area. A pullback retest on $1.800 or a double bottom formation, which confirms an uptrend or bearish trend reversal, could make trade condition for a long position. 

The entry-level would be $1.800, with the primary and secondary targets at $1.996 and $2.000, respectively. The stop loss would be at the low liquidity zone of $1.695.  

A daily close above 50 MA  ($2.110) will invalidate the aforementioned thesis. Such a move could set NEAR to directly hit the upper boundary of $2.000. A close above $2 could improve NEAR’s chances of targeting its 200 EMA level of $2.7. 

At press time, the RSI had crossed above the equilibrium level but retraced, showing the market was neutral. However, the accumulation/ distribution increased, indicating significant accumulation happened over the past few days.

Shorts dominated the overall exchange long/short ratio

Source: Coinglass

According to Coinglass, short-sellers had slight leverage in the mid-term as short positions were higher than long positions. It implied a bearish outlook for the asset in the mid-term. 

Read Near Protocol [NEAR] Price Prediction 2023-24

However, funding rates’ history showed positive funding for the NEAR/USDT pair across most exchanges since the start of April. The aforementioned conflicting metrics call for caution and tracking BTC’s movement for more informed trades. 

Source: Coinglass