$NEAR just got whacked right at the $6 doorstep.
Yesterday, it touched exactly $6.0 intraday, right into the weekly resistance zone around $5.97. Then it turned around and plunged more than 5% in an hour. It's now at 5.16, down over 10% in 24 hours. Nearly half of the 30% rally fueled by ETF optimism and acquisition news in recent days has been wiped out overnight.
This rally was just too steep. It was still hovering around 4.3 on 10-8, and touched 6 yesterday. Open interest in the futures market piled up to nearly $2 billion, with longs all crowded in the same direction. It only takes a brief pause to trigger this kind of cascade-style pullback. First, watch whether support at 5.2 holds; if it breaks, the next stop is around 4.9.
A sharp drop actually looks a bit better than a slow bleed. Take it one step at a time.
#NEAR #Market analysis
Yesterday, it touched exactly $6.0 intraday, right into the weekly resistance zone around $5.97. Then it turned around and plunged more than 5% in an hour. It's now at 5.16, down over 10% in 24 hours. Nearly half of the 30% rally fueled by ETF optimism and acquisition news in recent days has been wiped out overnight.
This rally was just too steep. It was still hovering around 4.3 on 10-8, and touched 6 yesterday. Open interest in the futures market piled up to nearly $2 billion, with longs all crowded in the same direction. It only takes a brief pause to trigger this kind of cascade-style pullback. First, watch whether support at 5.2 holds; if it breaks, the next stop is around 4.9.
A sharp drop actually looks a bit better than a slow bleed. Take it one step at a time.
#NEAR #Market analysis