Can Near reclaim the support level?

Near was traded on a consolidation channel that fluctuated between the $ 3.50 support level and the resistance level of $ 8.30 during the last month. However, he recently broke this support level and entered a downward train.

However, Near is currently trying to reclaim this level of support. If it is successful, the price may enter the consolidation channel again and create a new high level.

However, the current price movement is only a temporary recovery and it is possible to create a lower peak before Near’s decline trend.

Mixed market signals increase uncertainty

Market indicators continue to give mixed signals for Near. In particular, Funding Rate shows that sellers dominate the market.

• Negative Funding Rate: The financing rate for Near is currently -0.0170, that is, sellers strongly believe that the price will fall further.

In addition, the long position of $ 137,140 in the last 24 hours in the market was forced to close, while short position liquidations remained only $ 24,170. This big difference shows that the bears hold control and that the price is likely to fall further.

However, Teker Buy-Sell Ratio (receiver-selling ratio) still indicates that bulls exist.

• When this ratio is above 1, it means that buyers are higher than the sales volume.
• The current ratio of Near was 1.004, that is, the buyers have suffered, albeit light in the last 24 hours.

These mixed signals show that it is difficult to determine a definite direction in the market.

Decrease in active addresses increases sales pressure

There was a big decrease in the number of daily active addresses on the Near network.

• The number of active addresses, which was 4.2 million on February 13, fell to 3.0 million.
• This decrease of 1.2 million shows that investors leave the market and the volume of transaction decreases.

The decrease in active addresses while the price decreases indicates that investors move away from the market and the activity on the network decreases. If this decrease continues, the sales pressure on Near may increase and the negative effects on the price may be strengthened.

What awaits Near investors in the short term?

While Near struggles to regain a critical level of support, market signals are confused.

• Although bears seem to control the market, some indicators show that bulls are still active.
• If Near continues to lose the active address, the downward pressure on the price may continue.
• The funding ratio and liquidation data increase the effect of the bear market, but the increase in the purchase volume may keep the price in balance for a while.

Whether Near can recover, will depend on the net signals that the market will give in the coming days.