NEAR Protocol Plunges 3.8% in 24 Hours, Bears in Control Despite Mixed Sentiment

NEAR Protocol (NEAR) has experienced a 3.80% decline in the past 24 hours, with its press time valuation at $3.38. This bearish movement is part of a broader downward trend that NEAR has been experiencing over the past month, with a total decline of 36.94%.

Despite the recent price pullback, NEAR attempted to reclaim higher levels by trading back within the consolidation channel and forming a new high. However, it remains uncertain whether this is a genuine rally or merely a temporary respite before the asset continues its downward trend. Market sentiment is mixed, with several indicators suggesting a potential delay in a possible rally or further market declines.

One possibility is that NEAR is forming a lower high before continuing its downward trend. To determine the price trend, AMBCrypto analyzed additional factors and found a mixed sentiment in the market. Several market indicators suggest a mixed sentiment, with the Funding Rate showing that sellers are funding the market, based on a negative reading of -0.0170. This indicates that sellers are highly convinced that NEAR's price will decline shortly.

Similarly, there have been more long liquidations in the market across all time frames, with a total of $137,140 worth of long contracts forcefully closed in the past 24 hours, compared to $24,170 in short liquidations. This high disparity suggests that NEAR's bears are in control, increasing the likelihood of further price declines. However, the Taker Buy-Sell Ratio indicates that bulls remain active, as buying volume has surpassed selling volume over the past 24 hours, with a reading of 1.004.

Adding to the pressure, there has been a significant decline in the number of Daily Active Addresses on the NEAR chain. Between February 13 and the latest data at press time, active addresses have dropped by 1.2 million, from 4.2 million to 3.0 million. This suggests that a notable portion of this decline comes from sellers leaving the market, which could add more downward pressure on the asset as more sellers enter the market.