NEAR Faces Resistance In Attempt To Breach $2 Level As Bears Block Its Way

Altcoins like NEAR have experienced a similar slump in value as the major cryptocurrencies during the previous several days.

Cryptocurrency price index Coingecko reports that NEAR’s price is currently bearish, reflecting the general market sentiment. At the time of writing, the token was trading at $1.8515, below the key psychological $2 zone.

Major investors’ loss of faith in cryptocurrencies following the FTX debacle has contributed to the current gloomy sentiment on the cryptocurrency market.

Because of this, other markets where traders with FTX positions also suffered catastrophic losses.

Recent research indicates NEAR has a neutral outlook, suggesting the token’s futures interest is bullish. However, the token’s bearish break below $2 may be indicative of more market weakness.

Negative Mood For NEAR

Although past performance is not a guarantee of future results, it does influence traders’ and investors’ perceptions of an asset’s value. NEAR is experiencing exactly this, as the market structure is extremely negative at the moment.

The coin’s RSI readings are also not encouraging. After a moment of hesitation, it reversed its neutral stance. Since October 31st, the Chaikin money flow indicator has likewise been consistently showing a downward trend, falling below the neutral band.

It has been made much worse by recent occurrences in the cryptospace.

As of this writing, the indicator is -0.23, suggesting that bears are now in charge of the market. Bollinger bands indicate a huge increase in volatility that could result in a bullish near future, despite the current bearishness.

This marginally positive near-term outlook is further backed by the 20-day triple EMA, which has recently flipped from resistance to support.

Short-Term Advantage Likely

Nonetheless, the 50-day triple EMA continues to function as price barrier. This discrepancy in timelines can be seen as a short-term advantage for NEAR. A $2 bearish breach is seen to increase market’s suffering.

The previously mentioned analysis may prove accurate. On the NEAR futures market, short-term investors and traders can utilize the positive OI (Open Interest).

However, long-term traders will face a difficult choice: sell now and realize their losses, or hold and hope for a possible bull run.

The first scenario is more probable than the second. As the currency loses its $2 psychological support, the confidence of investors and traders will decrease. This is already evident in NEAR’s RSI data.

If conditions continue to deteriorate daily, NEAR might fall to $1.5575. A level that has not been witnessed in almost a year.

NEAR total market cap at $1.5 billion on the daily chart | Featured image from Telegaon, Chart: TradingView.com

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