- Increased liquidity and the prevailing uptrend contribute to the anticipated upward movement.
- If buying pressure persists, NEAR could climb to $5.2 and potentially extend to $8.
Despite the weight of recent market pullbacks (-16.48% last week and -10.61% over the past four weeks), NEAR Protocol (NEAR) has shown signs of resilience. A modest 0.43% decline over the past 24 hours signals a potential shift toward bullish control.
Short Traders Misjudge Market Momentum
A key indicator of changing market dynamics is the notable liquidation of traders who bet against NEAR, expecting its price to decline.
Over the past 24 hours, $114.86k worth of short positions on NEAR have been eliminated, which is a result of the increasing number of traders betting on a price increase.
Source: Coinglass
AMBCrypto has now addressed the question of NEAR’s future direction as buying interest continues to increase.
NEAR Poised to Surge to $5.2, With Further Gains on the Horizon
AMBCrypto’s technical analysis indicates that the 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 the buying pressure at this level continues, the price is likely to reach the first target of $5.256, although a pullback to $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 momentum changes and sellers dominate, the token could retreat towards probable support levels at $3.085 and $2.479.
Buyers acknowledge that NEAR is undervalued
AMBCrypto’s analysis using Chaikin Money Flow (CMF) and 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 it is below 1. This suggests a potential reversal in the direction of the asset’s price, which is currently the case with NEAR as it stands at 0.595.
Source: Trading View
Realistic or not, here is the market capitalization of NEAR in terms of BTC
Meanwhile, the CMF, which measures accumulation and distribution, is below zero but has started to move sideways, indicating balanced buying and selling pressures.
Such conditions often precede a market breakout or breakdown. A breakout would strengthen bullish confidence, while a breakdown could lead to lower prices.
