The NEAR price drop could drop to $1,584.
NEAR recorded declines in weighted sentiment, trading volume and development activity.
A candlestick closing above the 61.8% Fib level ($1,678) will invalidate this bearish forecast.
NEAR Protocol (NEAR), the unparalleled blockchain platform, has not been making much of a profit lately for investors who have their own token (NEAR). But there could be a short-selling opportunity at $1,584 if the NEAR downtrend continues for a day or two.
Technical indicators and on-chain stats suggest that NEAR’s downtrend could continue. If the NEAR bears hold steady, investors can maximize their short selling at $1,584.
NEAR at Immediate Support at 50% Fib Level ($1,631): Will Bears Push Down?
Bears could drive down the price of NEAR based on three key technical indicators on the daily chart.
First, the Relative Strength Index (RSI) was at 35, resting in the range adjacent to the oversold area. This indicates that buying pressure eased as sellers stepped in.
Second, the On Balance Volume (OBV) showed a decrease, indicating a decline in trading volume. This shows that buying pressure could ease further, adding additional leverage for sellers.
Third and finally, the Directional Movement Index (DMI) showed that sellers led the market at press time. The red line (sellers) was at 27, above 25, indicating that sellers had so much influence on the market.
Collectively, these indicators reinforce that selling pressure is strong enough to push NEAR to previous support at the 38.2% Fib level ($1,584).
However, an intraday candlestick closing above the 61.8% Fib level ($1,678) invalidates the above bearish forecast.
NEAR’s sentiment and development activity declined
We found that NEAR protocol development activity had a direct impact on the initial token price. At the time of writing, the development activity of the blockchain platform had declined, causing the price of the token to drop. As such, a continued decline in development activity could likely lower the price.
In addition, trading volume and sentiment fell with falling prices, indicating diminishing buying pressure as investors turn bearish on the token. Thus, NEAR’s downtrend could last for a few days before a price reversal occurs that opens up short-selling opportunities.
However, the bullish sentiment on NEAR will lead to price reversal, spoiling the party for sellers and invalidating the above prediction.
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