- Increased liquidity and a prevailing bullish pattern contribute to the anticipated upward movement.
- If buying pressure persists, NEAR could climb to $5.2 and potentially extend to $8.
Despite bearing the brunt of recent market downturns—with a 16.48% drop over the past week and a 10.61% decline over the last four weeks— NEAR Protocol [NEAR] has shown signs of resilience. A modest 0.43% decrease in the last 24 hours signals a potential shift towards bullish control.
Short traders misjudge market dynamics
A key indicator of shifting market dynamics is the notable liquidation of traders who have bet against NEAR, expecting its price to fall.
In the last 24 hours, short positions on NEAR worth $114.86k have been eliminated, which is a result of the growing number of traders betting on a price increase.
Source: Coinglass
AMBCrypto now addressed the question of NEAR’s future direction as buying interest continues to surge.
NEAR set for a rally to $5.2, with more gains on the horizon
AMBCrypto’s technical analysis indicates that bullish sentiment is supported by a symmetrical triangle and other bullish patterns.
Currently, NEAR is trading at the support level of the symmetrical triangle pattern at $3.91. If buying pressure at this level continues, the price is expected to reach the first target of $5.256, though a pullback at $4.317 could occur.
Source: Trading View
Stronger buying pressure could then propel NEAR towards longer-term targets of $6.489 and $8.520, where significant liquidity awaits.
Conversely, if market dynamics shift and sellers dominate, the token could retreat to likely support levels at $3.085 and $2.479.
Buyers recognize NEAR as undervalued
AMBCrypto’s analysis using the Chaikin Money Flow (CMF) and the Market Value to Realized Value (MVRV) indicators suggests that NEAR is currently undervalued.
The MVRV ratio, which compares market capitalization to realized capitalization, indicates undervaluation when below 1. This suggests a potential reversal in the asset’s price direction, which is currently the case with NEAR as it reads at 0.595.
Source: Trading View
Realistic or not, here’s NEAR’s market cap in BTC’s terms
Meanwhile, the CMF, which measures accumulation and distribution, is below zero but has begun to move sideways, indicating balanced buying and selling pressures.
Such conditions often precede a market breakout or breakdown. A breakout would reinforce bullish confidence, while a breakdown could lead to a price decline.
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