NEAR Faces Uncertainty Amid Market Signals and Declining Active Addresses

• The ongoing struggles of Near Protocol (NEAR) suggest that a significant rebound may remain elusive in the current market landscape.

• With NEAR’s recent price movements, market analysts are closely monitoring critical support levels that could dictate future trends.

• As noted by industry experts, “The mixed signals present in NEAR’s metrics could delay a rally or further exacerbate market declines.“

Near Protocol struggles to maintain upward momentum as mixed market signals create uncertainty about future price movements.

NEAR attempts to reclaim higher levels amidst market volatility

After navigating a rocky month spent within a consolidation channel—oscillating between a support level of $3.50 and a resistance point at $8.30—NEAR recently faced a breach of this support, prompting a downward trend. Despite these challenges, the asset is making a concerted attempt to reclaim this support level and establish new highs at the time of writing.

This recent attempt for recovery showcases the asset’s resilience, yet it is crucial to recognize that any upward movement may still be temporary amid a prevailing bearish sentiment. The intertwined nature of these price levels indicates that investors should remain cautious while observing market trends.

Source: TradingView

While some analysts suggest that this recent price pullback may indicate NEAR is preparing to establish a new lower high, others posit that renewed buying activity could shift momentum back to the bulls. Analyzing these two perspectives, it becomes apparent that market sentiment is tenuous at best.

Mixed market sentiment creates uncertainty regarding NEAR’s trajectory

The current market landscape for NEAR is characterized by mixed sentiment as multiple market indicators seem inconclusive. The Funding Rate, currently at -0.0170, signals that a majority of sellers are backing their assumptions about NEAR’s impending price declines.

This negative funding rate emphasizes the prevailing bearish outlook in the market, suggesting that sellers are confident NEAR’s price will continue to dip. It highlights the need for caution among potential buyers anticipating a price recovery, given the bearish implications at play.

Source: Coinglass

Compounding these bearish signals, a stark increase in long liquidations is evident in the recent data. With over $137,140 in long contracts being liquidated against just $24,170 in shorts over the past day, the data reflects a strong control by bears, suggesting a higher likelihood of further declines.

Conversely, a slight glimmer of hope can be seen in the Taker Buy-Sell Ratio, which indicates that buyers have been asserting their influence lately, as total buying volume outpaced sales. A ratio reading of 1.004 reflects a market that has seen elevated buying activity, albeit precariously positioned against the backdrop of bearish trends.

Decline in active addresses adds to downward pressure on NEAR

A notable decline in Daily Active Addresses on the NEAR blockchain poses additional challenges. A decrease in active addresses often correlates strongly with a drop in network activity, leading to speculations that many traders are exiting their positions amidst market unrest.

As reported by Artemis, there has been a significant drop of 1.2 million active addresses—from 4.2 million to 3.0 million—indicating a substantial exodus of traders likely bolstered by recent price declines.

Source: Artemis

If the trend of declining active addresses persists, it could add significant downward pressure on NEAR’s price as more sellers may opt to liquidate their holdings, further complicating the asset’s recovery efforts.

Conclusion

In summary, NEAR Protocol is currently facing substantial bearish pressures driven by mixed market sentiments and declining network activity. With the asset struggling to reclaim critical support levels, the next movements will be pivotal for its long-term viability. Traders and investors should pay close attention to market indicators and network activity as they navigate this uncertain terrain.