- NEAR could climb to $5.343 if it breaks through the resistance at $4.476.
- Whales and retailers alike are showing bullish sentiment.
Recent market activity has seen Near Protocol [NEAR] experience substantial growth, with increases of 5.52% daily and 10.19% weekly. At press time, it was trading at $4.46.
This surge was linked to NEAR’s recent efforts to overcome a month-long bullish descending channel, although it continued to encounter strong selling pressure at this resistance level.
Is this rally sustainable? Could a breakout occur soon? AMBCrypto has conducted an analysis on NEAR to find out.
Key factor holding NEAR’s potential rise to $5.34
At press time, NEAR was trading within a month-long descending channel, something which dated back to May.
This pattern, defined by its rectangular shape with upper and lower bounds, typically precedes a rally after the asset bounces off the lower boundary.
NEAR has recently rebounded from the support zone, with notable wicking at the lower support level of $3.076.
Wicking signifies a rejection of lower prices, indicating that buyers have regained control and are pushing the price upward, hinting at potential upward momentum.
However, NEAR faced a significant hurdle at a major resistance level of $4.476 at press time. For the recent rally to sustain, buying pressure must surpass selling pressure.
Source: TradingView
If buyers can dominate sellers, NEAR is poised to break out of the channel and ascend to a new high of $5.343.
Otherwise, it may continue to trade within the descending channel, potentially prolonging this pattern for weeks.
Short sellers feel the heat as buying pressure mounts
Further analysis by AMBCrypto indicated a significant likelihood that the $4.476 resistance level will be breached, as buying pressure has intensified recently.
According to Coinglass, this surge in buying activity began on the 21st of August, leading to a sharp increase in liquidations among traders who bet against NEAR.
Over the past 24 hours, $182.65k worth of short positions have been eliminated from the market.
Source: Coinglass
Such events demonstrated growing buying interest and the emergence of long traders as selling pressure diminished.
Since the 20th of August, the OI-Weighted Funding Rate has remained positive, steadily increasing to 0.0066% at press time.
This indicated that long positions were prevailing, with long traders compensating short sellers, a sign of strong buyer confidence and potential for further upward momentum.
Source: Coinglass
If retail buying pressure persists, it could overpower the existing selling pressure at the resistance level of $4.476.
Read NEAR Protocol’s [NEAR] Price Prediction 2024–2025
Whales maintain buying pressure
Data from DeFiLlama indicated a surge in buyer confidence, as evidenced by the rising Total Value Locked (TVL), which stood at $213 million at press time.
Source: DefiLlama
An increase in TVL suggests that more NEAR is being invested in the protocol’s ecosystem. Typically, such an influx predicts a continued rise in price, reflecting sustained investor interest and market strength.
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