NEAR Protocol: Is Another 34% Drop Imminent? Buckle Up! 🚀😱

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Ah, NEAR Protocol, the once-promising beacon of hope! Over the last week, it has surrendered a staggering 11.38% of its value, and in the last 24 hours alone, it has plunged by 5.74%. It appears that the altcoin is attempting to defy gravity, but alas, the laws of financial physics are unforgiving! Just the other day, Bitcoin danced wildly, flirting briefly with a price of $90.2k before plummeting back to the realm of reality at $85.7k. Oh, the drama!

This 5.6% nosedive of Bitcoin has sent shivers down the spines of investors, already teetering on the edge of anxiety. In such a climate, NEAR traders have had little choice but to don their bear suits, ready for a gloomy trek through the market’s murky waters.

Just when hope flickered faintly, Futures data from Monday sparked a glimmer of optimism-a 13.1% surge in Open Interest, jumping from $122 million to $138 million, alongside a bump in spot buying volume. But as we know too well, in the world of cryptocurrencies, hope is often a cruel mirage.

The Futures funding rate rose, hinting at short-term bullish sentiment, but like a bubble, it was not meant to last. Thus, the eternal question echoes through the land of trading: What should our weary traders expect next?

The Collapse of Long-Term Range: A Tragic Tale

Since March, NEAR Protocol’s token has been trapped in a maddening range (marked in yellow), oscillating between $1.82 and $3.38. Yet, in a cruel twist of fate, the second week of December saw it close a weekly session at a dismal $1.59-well below the low range of $1.82 and the long-term support at $1.72. One might wonder if we’ve ventured into a tragic comedy.

The bearish script thickens, as the sliding OBV underscores relentless selling pressure while the RSI captures the downward spiral of this beleaguered altcoin.

The one-day chart paints an even bleaker picture, reinforcing the strength of the bearish trend. Since mid-November, both the OBV and RSI have been on a steady decline, suggesting that the sellers have taken full control of this tragic tale.

In the price action drama, the $1.82 level was retested, only to be met with staunch resistance from the sellers. A brief intermission of consolidation around $1.8 was soon followed by yet another descent into the depths.

Could a Bullish Reversal Emerge from These Shadows?

In light of the evidence laid bare before us, a bullish revival seems as likely as a cat learning to swim. The long-term downtrend coupled with the short-term volatility suggests that NEAR may very well tumble towards the ominous $0.97 long-term support.

For a flicker of bullish hope to reignite, NEAR must rise above the $1.82 threshold-a Herculean task indeed!

A Traders’ Dilemma: To Sell or Not to Sell?

For those eager to venture into the short side, let not FOMO cloud your judgment after witnessing NEAR’s recent descent. A potential bounce back to the $1.7-$1.8 supply zone, which triggered the current bearish impulse, could present an opportunity for a well-timed short sell.

Such a retest would offer a tantalizing chance to profit, with the caveat that any daily session closing above $1.82 would invalidate this strategy. Ah, the sweet taste of uncertainty!

Final Thoughts

  • Bitcoin’s erratic price fluctuations have unleashed a wave of selling pressure across the altcoin market, casting a dark shadow over tokens like NEAR.
  • The collapse of the long-term range and the failure of $1.72 support imply that a grim journey to $1 lies ahead.

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2025-12-18 09:33