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
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
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.