Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- NEAR must overcome two obstacles to reach his pre-FTX levels.
- NEAR’s funding rate has been stagnant for the past week.
NEAR protocol [NEAR] posted gains of 118% after rising from $1,240 to $2,710. But the uptrend has not been entirely smooth. NEAR experienced a prolonged price consolidation in mid-January but continued its bullish trend.
At press time, the value of NEAR was $2,534, well below pre-FTX levels of $3,344. However, if next week’s FOMC announcement is dovish (0.25 rate hike), NEAR could try to recapture its pre-FTX levels. But you must clear these obstacles.
Read NEAR Price Prediction 2023-24
Can NEAR Protocol bulls target pre-FTX levels?
On the 12-hour chart, NEAR’s RSI was 62, therefore bullish. The RSI has been hovering in the overbought zone throughout January. Therefore, NEAR Protocol bulls could try to target the pre-FTX level of $3,344.
But NEAR bulls need to clear the hurdles in the short-term selling pressure around $2,630 (red zone) and the $2,774 level. With On Balance Volume (OBV) moving sideways since mid-January, NEAR could fluctuate between $2,321 and $2,630 in the few hours before attempting a break above the selling pressure zone in the coming days.
However, a break below $2,321 and the uptrend line would invalidate the bullish forecast. The $2,140 support level could contain the decline.
Therefore, investors should follow the performance of BTC, especially after the FOMC announcement next week. Any rally in BTC will tip CLOSE bulls to smash the hurdles and target pre-FTX levels.
How much are 1,10,100 CLOSE is it worth it today?
Investor sentiment was positive despite a stagnant funding rate
According to Santiment, the recent price increase caused the weighted sentiment for NEAR to shift to the positive side. However, sentiment data was not available at press time.
On the other hand, the NEAR funding rate on the Binance exchange has been unchanged since January 22. It rested on the neutral line, showing that the demand for NEAR in the derivatives market stalled last week.
The above trend is also captured by NEAR open interest rate fluctuations despite rising prices. NEAR posted higher lows since January 19, but OI posted some lower lows over the same period, indicating a hidden divergence.
Although the previous trend could have delayed a much stronger uptrend momentum, the OI increased commensurately, at the time of writing. If the trend continues and more money flows into the NEAR futures market, its uptrend momentum could get a boost to get around its hurdles.