- NEAR’s price action continues to decline, but demand could resume once it enters the oversold zone.
- Near Protocol’s strong organic growth could provide a safety net in the long term.
NEAR traders should take to the skies due to the bearish price action, which has proven to be a boon for short traders. This was because the cryptocurrency is increasingly seeking more disadvantages.
Read Near Protocols [NEAR] price forecast 2023-24
Let’s see how far NEAR has fallen. Not only did it give up its January 2023 gains, but NEAR also extended its downtrend to a new low in 2023. One unit of NEAR was priced at $1 at the time of writing. The last time it traded at that price level was in December 2020.
Source: TradingView
NEAR’s long-term downside could dampen investor sentiment, but the glass-half-full perspective suggested otherwise. The cryptocurrency’s latest selling push has created oversold conditions, meaning sentiment is about to change. Additionally, we are seeing some divergence between prices and the Relative Strength Index (RSI), which could indicate that a reversal may be on the horizon.
Understanding NEAR’s current demand
Despite the potential for a rally, on-chain metrics suggested that investors were still a bit reluctant to dive back in. This was evident in the weighted sentiment, which was still close to its monthly low despite the sharply reduced price action.
Source: Santiment
Similarly, On-chain Volume showed a lack of excitement as the market struggled to secure a bullish base. The good news was that the derivatives segment was already showing signs of a demand revival. This was clearly visible in Binance and DYDX’s funding rates, which have turned positive again over the past two days.
Source: Santiment
Before you get too excited, it’s worth noting that external factors, such as the prospects of higher inflation, have been rising. This underlines the tight liquidity conditions that could lead to weak demand in the short term.
Is your portfolio green? Check out the NEAR profit calculator
NEAR’s long-term prospects remain rock solid, especially given its performance over the past three years. The price action may have been bearish, but Near Protocol saw significant growth.
NEAR has managed to integrate more than 1,000 projects onto its network during this three-year period. During that time, the number of accounts grew to more than 30 million.
Three years.
Thirty million+ accounts.
A thousand+ projects.No wonder the number one dApp in Web3 is calling NEAR home. pic.twitter.com/DB5SJW7dFr
— NEAR protocol | NEARCON | November 7-10 | Lisbon! (@NEARProtocol) October 13, 2023
The key point here is that despite NEAR’s declining price action, the protocol has built a strong ecosystem. It has strong backing from organic growth that could support the transition of interest once the crypto winter is over. This could work out to NEAR’s advantage in the long run.
