NEAR price has attracted the attention of the market participants following the impressive week-long rally on the chart, with the question being whether the momentum will keep going ahead and reach the $5 mark. According to crypto analysts, it was important to note the rally in question, even though it may be the right time for those who bought below $3 to take profits.
The rising prices combined with increased participation in the derivatives market can give investors more things to consider as NEAR is getting closer to its potential resistance level.
NEAR Price Gains Momentum
Investor Analyst Jordan observed that NEAR has been able to make a substantial run up from low levels and recommended that traders not follow the price at present.
In this regard, the investor has observed that $5 could turn out to be a crucial price level for the market and trigger a reaction. This would become a relevant price level for traders in determining whether the price can continue rallying or see selling interest.
Source: Analyst Investor Jordan X post
Trader Jordan added that the weekly time frame might also be tried in the short to medium-term duration when traders are looking for a new entry point. This implies that retracement to the higher time frame support level is still within the scope of the analyst’s vision.
Also Read: NEAR Price Eyes $20 as W Pattern Emerges Amid Rising Activity and Growth
NEAR Gains 81% in One Week
The latest figures from Santiment help add perspective regarding the force that is powering the recent NEAR price move. NEAR recorded an increase of 81% during the period of September 13 to September 20, which took place during the announcement of confidential perpetual futures on September 17.
This move in the price is characterized by a massive surge in derivatives trading. Open interest denominated in dollars is up 119%, while open interest denominated in NEAR is up 21%.
The discrepancy in numbers between dollar and token-denominated numbers is significant considering the fact that the price of the asset in question also surged significantly during the period. This implies that the surge in dollar open interest is not only due to new positions but also due to the increase in price.
Funding Signals Rising Participation
Santiment also stated that NEAR fundraising went up to 1.6 times its two-month median on September 20. There are actually two other dates within the same timeframe where this happened.
Source: Santiment Intelligence
Higher funding suggests a greater interest in leveraged longs and hence becomes a significant factor along with price and open interest. However, according to Santiment, the divergence among the indicators is not strong enough to characterize the move as exhaustion.
On the other hand, the information provided above shows that the uptrend has gone beyond its initial phase. In particular, the weekly gains of NEAR reached 81%, and therefore new participants should take into consideration higher volatility and positioning around the token.
Privacy Narrative Adds Context
Additionally, Santiment noted that NEAR is a relatively new addition to the privacy narrative, which has been recently highly linked to ZEC. This link has been made owing to the introduction of private perpetual futures on the NEAR blockchain.
The above development has provided another market storyline in addition to the momentum story for the latest price movement. But the strength of the rally will be better captured by the prices and open interest.
In the case of NEAR, sustained interest without much divergence in prices and derivative numbers may be a vital aspect for NEAR in the run-up to $5.
What Happens Next for NEAR Price?
NEAR price is entering an era where the $5 level and the weekly setup pointed out by Investor Jordan will attract traders’ attention.
A continued move to $5 may highlight the short-term target area, while any failure to do so might lead to a switch in the attention to the weekly chart for a possible correction. In addition to this, the figures by Santiment indicate that there is higher participation in the market, with open interest and funding increasing alongside the 81% weekly gains in NEAR.
The further advance by NEAR will be determined by how buying pressure continues without leveraging positions in derivatives.
Also Read: NEAR Price Holds Above $2.82 as Hyperliquid Launch Adds New Catalyst
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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