After a rebound on its support, the price of Near recorded an increase of more than 130%. Let's look at the future outlook for NEAR price.
Location of the Near (NEAR)
After initiating a rebound off the $3.5 support, NEAR price soared to $8.24, just below its first pivotal resistance. The cryptocurrency has recorded an increase of more than 130% in the space of a month. NEAR therefore broke through the resistances of $5.9 and $6.5, mentioned in the analysis of November 7, 2024. It also exceeded an important value zone, as well as its annual VWAP and its monthly pivot point. The latest fluctuations in NEAR formed a double bottom, crossed from the top, thus confirming a reversal of the medium-term upward trend, as well as a continuation of the long-term trend.
At the time of writing, NEAR's price is around $6.21. The cryptocurrency recently suffered a bearish retracement exceeding the 38.2% threshold. Naturally, this movement called into question the short-term trend of cryptocurrency. However, it should be noted that the medium and long term trends remain clearly bullish. This is supported by the fact that NEAR price is trading above its 50-day and 200-day moving averages, crossed upwards. Unsurprisingly, this recent decline has affected the upward momentum of the cryptocurrency. This is reflected as much on its price as on its oscillators.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on Near derivatives (NEAR/SDT)
Open interest in NEAR/USDT perpetual contracts showed a correlation with the decline in NEAR's price, indicating an exit from speculative positions in the cryptocurrency. The CVD and financing rates, revised downwards, reflect a certain pessimism on the part of investors. On the liquidation side, the latest ones were not very significant, testifying to a balanced market where buyers and sellers seem in line with the current direction of the crypto. Nevertheless, it is worth noting that a historic peak in long position liquidations was recorded on December 9, reaching $9.8 million according to Velodata data. Although this event is worrying, it does not appear to have had a notable impact on the price of NEAR.
The heat map of NEAR/USDT perpetual contract liquidations reveals that the crypto has rebounded to an area just above $6. However, this interest appears to lack lasting support, with the price having erased this latest rise. At present, the notable liquidation zones are distributed on either side of the current price. Above, a first zone is located slightly above $7, followed by another around $8.3. Below, a large area is visible around $5, while another, lower one is near $4. The price approaching these levels could result in a massive triggering of orders, increasing the risk of increased volatility for the crypto. These areas therefore represent a crucial point of interest for investors.
Near (NEAR) Price Forecast
- If the NEAR price remains above $5, a return to $8.25 could be envisaged. If the upward movement continues, the next resistance would be around $9. Beyond that, levels of $12 or even $13 could be reached, which would represent an increase of more than 108%.
- Conversely, if the price of NEAR fails to remain above $5, a decline towards $4 is possible. If the bearish movement continues, support could be found slightly below $3.5, or even around $3. Such a development would represent a drop of around 50%.
Conclusion
NEAR posted a strong advance followed by a slight decline, temporarily calling into question its short-term momentum. However, the underlying trends remain bullish, supported by solid signals, suggesting a potential for recovery. Thus, it will therefore be essential to carefully monitor the price reaction at key levels to validate or revise current forecasts. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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