NEAR Protocol (NEAR), at risk of an additional 20% plunge..."Retail investors caught at peak in emergency"

▲ NEAR Protocol/Source: X

NEAR Protocol (NEAR) has recently experienced a sharp correction, facing the risk of further decline. A warning has been issued that if it fails to defend its key support level, a price retreat of about 20% could occur in the short term.

According to U.Today, a virtual asset media outlet, on September 29 (local time), NEAR Protocol has fallen about 15% since hitting a high of $3.12 on September 23, maintaining a bearish trend around the $2.6 level. This trend shows a relatively larger drop amidst a broader correction phase in the overall cryptocurrency market, including Bitcoin (BTC).

From a technical chart perspective, the ability to maintain the short-term support zone is identified as a critical turning point. The current price level of around $2.6 has served as a major support area from the previous rebound zone. If buying pressure fails to enter at this price level and it breaks downwards, it could further drop to the next support level of $2.1 to $2.2, which implies an additional decline of approximately 20% from the current level.

Market indicators also suggest that selling pressure is dominant. As the trading volume that led the short-term rebound gradually decreased, successive liquidations of leveraged long positions in the derivatives market exacerbated the downward pressure. Key auxiliary indicators such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are also signaling the continuation of a short-term downtrend.

However, the possibility of a technical rebound cannot be ruled out, depending on the stability of macroeconomic indicators and whether Bitcoin defends its support level. If the $2.6 level is successfully defended and buying pressure, accompanied by trading volume, re-enters, it is assessed that it could re-test breaking the $2.85 resistance level.

Market attention is focused on whether NEAR Protocol, which is testing the $2.6 support level due to a sharp short-term drop, can halt further decline and establish a foundation for a rebound.

[Article Key Summary]

-NEAR Protocol (NEAR) has undergone a 15% correction from its peak, putting its $2.6 support level to the test.

-Failure to defend the $2.6 support level could lead to an additional decline of about 20% to the $2.1-$2.2 level.

-Amid declining trading volume and weak auxiliary indicators, Bitcoin (BTC)'s ability to defend its support level is cited as a variable for a rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. This content should be interpreted for informational purposes only.*