- NEAR Protocol is trading at $2.85, with bullish W-bottom and double-bottom patterns hinting at a potential breakout.
- Targets are set at $4.60, $5.95, and $8.20 if key resistance levels are broken.
- Futures trading volume jumps 66.44% to $1.06B, while open interest drops 4.12%, signaling profit-taking.
NEAR Protocol (NEAR) is displaying initial recovery signs despite a slight decline in recent trading. At the time of writing, NEAR is trading at $2.84 with a 24-hour volume of $1.06 billion and a market capitalization of $3.55 billion. The current price has dropped 1.78% over the past 24 hours, but experts expect a bullish breakout to materialize in the future.
NEAR Protocol Eyes Gains as Double Bottom Forms
Renowned crypto analyst CryptoBusy noted that NEAR is beginning to experience significant upward pressure on larger time frames. The analyst also highlighted a double bottom formation, a popular bullish reversal pattern, along with bullish divergence on primary technical indicators.
Both suggest that the momentum of selling is losing steam and could be replaced by buying interest shortly. With CryptoBusy, the threshold level of concern is the neckline of this double bottom formation. A break above and hold of this resistance could open the door to a large upward price move.
W-Bottom Formation Could Ignite NEAR Price Surge
Supporting this view, another crypto analyst, Daniel Ramsey, also noted that the daily chart of NEAR has formed a W-bottom pattern, signaling potential bullish momentum. Ramsey has set three target points in the event the bull case scenario materializes: $4.60, $5.95, and $8.20.
With various bullish indicators aligning, the price movement of NEAR Protocol in the next few days could prove critical. If the bulls push the token beyond key resistance levels, it could drive a move toward multi-month highs and position NEAR as one of the coins to watch in the current market cycle.
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NEAR Protocol Derivatives See Strong Volume Jump
NEAR Protocol’s futures market experienced a significant increase in trading volume, swelling by 66.44% to $1.06B. This sharp spike indicates increased market engagement despite rates remaining relatively steady.
Conversely, open interest fell -4.12% to $330.99 million, indicating there were some position closures even after the massive increase in trading volume. This combination of increased activity but decreased open interest may indicate short-term profit-taking or rapid position switching.
The OI-weighted funding rate is 0.0123%, indicating a weak bias in favor of long positions. This means the majority of perpetual futures are weakly biased in favor of price gains.
With funding rates in the positive and trading volume remaining elevated, the NEAR market could be primed for additional swings in rates. Nonetheless, the decline in open interest implies new capital inflow will be essential to maintain traction.
Also Read | NEAR Protocol Surges to $2.80: Will It Hit $8 Next?
