NEAR Protocol Struggles Amidst Bearish Pressures and Declining Activity

NEAR Protocol (NEAR) faces uncertainty amidst mixed market signals and declining active addresses, making a significant rebound challenging in the current market landscape.

NEAR's recent price movements have analysts closely monitoring critical support levels that could dictate future trends. Industry experts note that the mixed signals present in NEAR's metrics could delay a rally or exacerbate market declines. Despite attempts to reclaim higher levels amidst market volatility, NEAR struggles to maintain upward momentum, with a recent breach of support at $3.50 prompting a downward trend.

The Funding Rate, currently at -0.0170, signals a majority of sellers backing their assumptions about NEAR's impending price declines. This negative funding rate emphasizes the prevailing bearish outlook, suggesting that sellers are confident NEAR's price will continue to dip. Additionally, a stark increase in long liquidations is evident, with over $137,140 in long contracts being liquidated against just $24,170 in shorts over the past day, reflecting strong control by bears and suggesting a higher likelihood of further declines.

A notable decline in Daily Active Addresses on the NEAR blockchain poses additional challenges. A decrease in active addresses often correlates strongly with a drop in network activity, leading to speculations that many traders are exiting their positions amidst market unrest. If the trend of declining active addresses persists, it could add significant downward pressure on NEAR's price as more sellers may opt to liquidate their holdings, further complicating the asset's recovery efforts.

In summary, NEAR Protocol is currently facing substantial bearish pressures driven by mixed market sentiments and declining network activity. With the asset struggling to reclaim critical support levels, the next movements will be pivotal for its long-term viability. Traders and investors should pay close attention to market indicators and network activity as they navigate this uncertain terrain.