- Spot traders resumed buying after heightened selling, while the Total Value Locked (TVL) saw an equivalent surge
- Sentiment across the derivatives market turned positive after days of selling, with NEAR hinting at a major price rally
Over the last 24 hours, NEAR has gained momentum on the price charts, jumping by 8.32% as bullish sentiment improved across the board.
However, according to AMBCrypto’s analysis, another 50% hike could materialize soon. That may be contingent on several factors though, including buying sentiment in the spot and derivatives markets, liquidity deposits into the NEAR protocol, and a resistance level ahead of the price.
Buying pressure returns as traders scoop up NEAR
In the spot market, traders have begun buying again. At the time of writing, over $474,000 worth of NEAR had been purchased, as indicated by exchange netflow data.
This buying activity follows a total of exactly $1 million worth of NEAR being sold off the previous day by a cohort of spot traders. This resumption in buying is a sign of continuation of a potential bullish move in the market, provided more NEAR is purchased going forward.
Source: Coinglass
The likelihood of a market rally has risen too as the surge in spot market buying seemed to correlate with liquidity inflows into various protocols on NEAR.
At the time of writing, the total value locked (TVL) revealed that an additional $11.77 million had been added to the protocols. This, after rising from a low of $154.12 million to $165.89 million. When such movements occur, they indicate that buying has resumed with a long-term bullish outlook, as this added liquidity is usually locked.
Futures traders lean bullish
In the Futures market, sentiment is beginning to shift from previous sessions too. The OI-weighted funding rate, a metric combining Open Interest and the funding rate of an asset in the Futures market, turned positive after two days in the negative.
Since 04 March, the OI-weighted funding rate had been down, indicating selling pressure dominance. However, there’s been a turnaround. It now reads 0.0036%, implying that a market rally could be on the horizon.
Source: Coinglass
The liquidation data correlated with this movement. As the market trended higher, many traders with short contracts took major losses as they were forced out of their positions.
At press time, data showed that $215,000 worth of short contracts had been liquidated from the derivatives market. Especially as the price moved against these traders – A sign of strong buying presence.
Can NEAR break resistance and rally to $4.84?
On the charts, NEAR seemed to be displaying a bullish pattern, all while trading within a descending triangle – A pattern known to precede major market rallies.
For NEAR to establish this rally, it must break out of its press time resistance level. Should that occur, a potential upside move is likely. In fact, NEAR could rally by 53.85% to hit $4.84.
Source: TradingView
Simply put, market sentiment has been bullish, and NEAR may have the potential for a major upswing to push its price towards the target level.
