NEAR has recovered to pre-market crash levels, although its performance is being held back by overbought conditions.
Since its launch, Near Protocol has been one of the DeFi ecosystems that have had the best performanceAlthough it fell to lows in June, dragged down by the rest of the market, it managed to recover and has recovered much of its value.
However, the NEAR community She is worried because Investor participation has been gradually declining, generating uncertainty about what the future of the protocol will be.
NEAR has rallied from June lows of $3,1 to $5,29 (at the time of writing), a rally of 86%.
Will NEAR continue to grow?
Unfortunately, on-chain data shows that NEAR has lost some traction after having recovered its pre-market crash levelsIn this sense, the data shows two signs that Near Protocol's growth is slowing down.
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The first of them is that there is a excessive purchasing pressure. Since its June lows, NEAR has attracted the attention of investors as it is an asset that has consistently performed well.
This has caused a lot of FOMO and raised the buying pressure on the NEAR token. Over the past few days, NEAR's Relative Strength Index (RSI) is on the edge of the bullish zone and very close to the overbought zone.
If you reach this last zone, NEAR could halt its bullish rally, even causing it to fall.
On the other hand, NEAR has been observing Consistent settlements for both short and long contracts, with higher concentrations for long contracts.
Short contract liquidations in recent days have exceeded 6 billion dollars, the highest figure recorded in the last three months.
What does this mean? Investors are starting to move away from the asset, as they expect a drawdown in the near future. This process could put a stop to the upward trend, leading to a real price drop.
In fact, the recession of the Near Protocol ecosystem is also being felt in the Decrease in the total amount of ETH flowing through the Rainbow Bridge, which links Near and Ethereum.
The Listed Effect
However, since August 11, when it became known that the token is entering Coinbase's roadmap, Near Protocol's numbers seem to be improving.
Since then, Near Protocol has seen an increase in on-chain activity, with a Intraday trading volume soared on the 11th to a high of $847 millionHowever, trading activity began to fall shortly after to $244,56 million, a 200% drop in just four days.
This, according to analysts and experts, means that the effect that being listed on a new exchange has on the token's price will be short-lived and that it will soon return to its normal trading levels.
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