The value of NEAR Protocol skyrocketed in January, experiencing a growth of over 100% as it rose from $1.247 to an impressive $2.721. However, the value did see some fluctuation in the following days. At present, NEAR’s value stands at $2.501, yet it’s facing the possibility of a correction due to a divergence from a technical indicator.
The daily chart presents a bullish outlook for NEAR Protocol, following a triumphant rally in January. Despite the upward surge, the price was rejected at the $2.721 resistance level. Meanwhile, the upward trend in price was contrary to the movement displayed by the Relative Strength Index (RSI).
RSI trend downward diverges from price action, indicating potential Correction shortly. Furthermore, Correction may target $1.984, 50% Fib support based on the current price range of $2.323 to $2.721.
Support for the drop may come from 100-day EMA or 61.8% Fib, making them potential targets for short-selling. Break above 100% Fib ($2.721) invalidates bias, allowing a retest of $2.771 or $3.342.
According to Coinglass data, NEAR’s volatile open interest (OI) levels have challenged its solid upward rally. Currently, NEAR’s OI has taken a sharp drop but has leveled off, pointing to a potential shift in momentum that could sustain its upward trend.
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A decline in open interest could jeopardize future growth as funds exit the NEAR futures market. A negative impact on the uptrend may occur. Daily active users and trading volumes for NEAR have declined since mid-January, indicating reduced trading activity. This lack of buying pressure could prompt bears to devalue NEAR and trigger a correction.