In the last 24 hours, NEAR price gain exploded on the daily chart, leaving a bullish crater. The bears, anticipating a drop, felt the effect.
The bears will probably just suffer more as a result of what is ahead for NEAR, but if the cryptocurrency takes the previously established course, it may be justified.
At the time of writing, NEAR's price was up 56% over the past seven days and was trading at $7. Even though the surge was beneficial to many, the bears who had bet on the altcoin plunging after the three red candles in the preceding days found it disturbing.
Within a single day, short contracts valued at more than $2.23 million were liquidated. This was the first such wipeout in about three months. The native token of the DeFi system, however, is expected to rise, which will probably only enrage the bears. All indications point to this.
At an average of 0.0670%, the Open Interest-weighted Funding Rate for NEAR is currently significantly positive. In order to keep prices in line with the underlying asset, traders holding perpetual swap positions periodically pay fees to each other, which is known as funding rates.
If the spot price is not met by the derivative price, holders of long or short positions are compensated. Positive rates therefore imply an optimistic attitude in the market, and traders are hankering after more rises.
Beyond conjecture, however, the protocol's adoption is also increasing. The total value locked (TVL) on the NEAR protocol climbed by 18.42% in just one day, from $155 to $189 million, coinciding with the price increase on Wednesday.
The price of NEAR has increased, but the rise has not been solidified. This is due to the fact that NEAR currently faces a $6.90 hurdle. It is likely to be breached, but it is considerably more important to turn it into support so that its price climb can continue.
The factors stated above suggest that bears will probably stay away for a while in order to avoid suffering more losses. The cryptocurrency asset would be catalyzed by this and moved in the direction of the resistance level.
The asset is currently overbought, according to the Relative Strength Index (RSI). The RSI appears to be falling and is currently above 70. This may indicate that the bullish feeling has reached saturation and that a correction is about to happen.
A momentum indicator used by traders to determine if a market is overbought or oversold and whether to buy or sell an asset is the relative strength index or RSI.
Bulls may still be in the lead, according to readings above 50 and an upward trend; readings below 50, on the other hand, suggest otherwise. Despite being over 50, the indicator is declining, suggesting that bulls may be losing momentum in the wake of the recent price gain.