The NEAR Protocol Faces Additional Downside Risk as Technical Indicators Flash Red

The NEAR Protocol is struggling to recover from its downward trend, and technical indicators suggest that sellers are gaining confidence. Despite efforts to break free from its declining channel, the cryptocurrency is still trading below a crucial support level of $3.5. Should NEAR fall below this level, it could face additional losses that could impact its short-term outlook.

Technical indicators are flashing red, with the 20 Exponential Moving Average (EMA), 50 EMA, and 200 EMA all trending downward, indicating a strong sell bias. The Moving Average Convergence (MACD) histogram has fallen below the zero line, suggesting increasing selling pressure. The Awesome Oscillator is also flashing red, indicating negative momentum.

The cryptocurrency has been trading downwards since early March, losing value along the way. Derivatives data demonstrates that the current bearish trend is unlikely to be reversed in the near future. Open Interest, which measures the total number of outstanding contracts, is decreasing, while long positions outpace short positions by a factor of 2.202.

This indicates that most market participants are bearish and expecting more price drops. The cryptocurrency is currently experiencing further price declines, and a breach of the $3.5 support level could trigger a series of stop-loss orders. The next support levels, at $2.6, would leave NEAR open for further losses.

To achieve a significant reversal, NEAR would need to break resistance levels at $4.1, $4.99, and $6.2. However, given the technical difficulties faced by the cryptocurrency, this may not be an isolated case. Bitcoin (BTC) has been the primary driver of volatility in the broader cryptocurrency market, with many assets experiencing significant corrections.

Given this backdrop, investors and traders should exercise caution as the market continues to fluctuate. NEAR may remain strong on its fundamental fronts, but its short-term technicals are undoubtedly uncertain. We must keep an eye on the $3.5 support level, as any breach could indicate further downside risk.

For more insights and information on the cryptocurrency market, check out this article on CoinSeeks.com: NEAR Protocol Price Prediction 2023.

Ultimately, the NEAR Protocol is struggling to reverse its bearish trend due to various technical indicators. While a reversal is never guaranteed, it appears that Near may face difficulties in the near future.