- Bullish NEAR Market Structure Seems Contrary to Disappointing Market Demand
- Spot CVD suggested some hope that bulls could defend $3.85
At press time, NEAR Protocol (NEAR) was in a bearish trend on the longer time frames. On the charts, bulls found refuge at the $3.85 level, which is the 78.6% Fibonacci retracement level based on the rally from $2.45 to $9 in February and March.
Since then, the market structure has reversed several times. Today, even though the structure was bullish at press time, the outlook for the token is bearish.
Rejection from $5 and sustained bearish pressure
Source: NEAR/USDT on TradingView
This bearish outlook is summed up by the constant downtrend in the OBV. The constant flow of selling means that even if NEAR trades above a higher time frame, it must hold the support level at $3.85.
The price bounced back from $3.85 in the previous week and the token rose to $5.25. Unfortunately, it failed to reverse the support level in the following days.
The daily RSI has also moved below the neutral 50 mark after the recent price decline, indicating a change in momentum. Investors are hoping for a range formation around the $4 area and a slow rise in the OBV to indicate accumulation.
Unless these predictions play out as expected, the longer-term outlook looks bleak for NEAR’s price.
Spot CVD maintains pace despite NEAR price drop
Source: Coinalyze
Over the past few days, the open interest behind the NEAR protocol has been falling alongside the price. This indicates a bearish sentiment in the futures market.
The long to short ratio also saw a decline over the past 24 hours, but remained at a healthy 2.19, suggesting that there were more longs than shorts.
Realistic or not, here is the market capitalization of NEAR in terms of BTC
Surprisingly, even though the price has struggled to break through a short-term downtrend, the spot CVD has increased. This increase in buying pressure could give traders hope that NEAR can once again bounce from the $4 support area.
