- NEAR formed a double bottom at $1.85, but rising long liquidations temper breakout confidence.
- Net outflows and rising sentiment supported the bullish case, but resistance remains unbroken.
NEAR Protocol [NEAR] traded at $2.13, at press time facing a decisive retest of a descending trendline resistance after forming a clean double bottom at $1.85.
This setup often signals trend exhaustion and potential reversal, especially when paired with rising trading activity. For a bullish confirmation, the altcoin must decisively breach this resistance level.
A failure to do so may invalidate the reversal thesis, leaving NEAR vulnerable to further downside. The next few sessions will likely confirm the direction.
Source: TradingView
Traders pile in, but is it too much, too soon??
On the 4th of July, trader positioning on Binance revealed an increasingly lopsided sentiment. Long accounts dominated at 72.19%, pushing the Long/Short Ratio to 2.60.
This reflects aggressive bullish speculation that NEAR will soon break above the descending resistance.
However, when optimism becomes crowded, it often leads to liquidity risk. If the price fails to break out, this overleveraged structure could cascade into forced exits.
Optimism returns, but will it sustain?
Weighted Sentiment, according to Santiment, climbed to +0.427 after days in negative territory. This rebound shows that trader confidence has returned—at least temporarily.
Historically, sustained positive sentiment has supported upside moves, but short-lived spikes often lead to reversals.
Thus, sentiment must stay elevated to sustain momentum. If it dips again while the price remains flat, it may confirm a local top.
Does THIS confirm conviction or signal overheating?
On the 4th of July, Funding Rates on Binance flipped to +0.01%, meaning longs were paying shorts. This supports bullish momentum, but the size matters.
The rate is still modest, suggesting healthy positioning rather than excessive speculation. However, funding may rise further if longs continue to pile in without a breakout, risking a squeeze.
Therefore, this data currently supports cautious optimism—but traders should watch for rapid spikes that may foreshadow exhaustion.
Why are $2.22M in outflows a key signal for NEAR bulls?
NEAR saw a net outflow of $2.22 million from exchanges on the 4th of July, signaling that investors are withdrawing tokens from centralized platforms.
That’s often interpreted as holding behavior rather than intent to sell.
If this trend persists, it reduces near-term sell pressure and builds a stronger base for breakout attempts. However, Exchange Inflows returning sharply would weaken that case.
Are long liquidations a warning sign for overconfidence?
Despite rising optimism, liquidation data shows that long positions suffered losses of $269.99K on the 4th of July, compared to just $6.19K in short liquidations.
This imbalance suggested that bulls may have jumped in too early, only to be caught in a local pullback.
While not catastrophic, this liquidation event highlights fragility in the current uptrend. If similar imbalances occur again, it may erode confidence and delay breakout attempts.
Can NEAR bulls flip resistance into support?
NEAR’s bullish reversal setup was backed by strong sentiment and aggressive long positioning. However, elevated liquidations and unconfirmed breakouts signal caution.
A breakout above the descending trendline with continued spot outflows and stable funding would strengthen the bullish case. Until then, the market remains in a critical decision zone.
