NEAR Protocol (NEAR) has recorded remarkable growth in the market, thanks to a large amount of liquidity primarily coming from on-chain users. The current market sentiment indicates the potential for another price increase; however, the spot trading segment has not yet aligned with this trend and continues to witness price declines.
Growth in on-chain trading volume
On-chain trading activity has reached a peak in the last 24 hours. According to data from DeFiLlama, the total value locked (TVL) of the NEAR Protocol has simultaneously increased along with trading volume on DEX.
From September 7 to the present, NEAR's TVL has increased from $91.71 million to a new high of $111.23 million. This increase of $19.52 million reflects a significant rise in the number of NEAR tokens being staked during that period.
The trading volume on DEX has also recorded a notable increase, reaching a new high of $62.35 million, the highest since August 23. This indicates that trading activity in the market is vibrant. Over the past two weeks, NEAR has increased by 17%, confirming the continuous accumulation trend.
Support from technical indicators
The bullish momentum in the market is reinforced by technical indicators such as the Average Directional Index (ADX) and the Chaikin Money Flow (CMF). At the time of this report, the CMF has shown strong growth to 0.26 in the last 24 hours. Typically, when the CMF is positive and trending upwards, this indicates that the market is being dominated by buyers and trading volumes remain high.
This sentiment is also reflected through the ADX, an indicator that measures trend strength. When the ADX tends to increase alongside the price, it confirms that the trend is very positive. This is true for NEAR, as both the price and the ADX move in parallel. The increasingly strong bullish sentiment reinforces the overall price outlook and supports NEAR's potential for further growth.
The selling trend on the spot market
Although the market has recorded significant profits, there has also been an increase in the number of NEAR being sold on exchanges. In the last 48 hours, the amount of NEAR sold in the spot market has increased significantly.
On September 18, investors sold NEAR worth $6.94 million, and the latest data today shows that the sell-off has reached $2.90 million. In total, the amount sold off in 48 hours has reached $9.64 million.
Typically, a sell-off in one day indicates that traders may be taking profits, however, two consecutive days of strong sell-offs suggest the emergence of a downtrend.
If the spot sell-off continues, this could negatively impact NEAR's price outlook. However, the cash flow from on-chain investors may still provide positive signs for future price movements.