Cryptocurrencies endured a bloodbath over the past day as digital assets plunged following hotter-than-anticipated US labor market data.
Most tokens erased their last week’s gains following sudden double-digit price dips.
Near lost 14% within the past day to trade at $5.13 and appears poised for more pain ahead.
Blockchain data indicates faded interest in the NEAR blockchain, with daily active addresses plummeting over the past week.
NEAR momentum weakens as traders exit
While Near Protocol joined last week’s modest broad-based rallies, on-chain metrics reveal a worrying signal amidst the flash crash.
According to data from Artemis, active addresses on Near Protocol have dipped from 4.2 million on January 1 to 3.6 million today.
Chart by Artemis
The substantial 16.67% weekly decline indicates dwindled investor interest.
That shows fewer individuals engaged or transacted using the protocol, which (often) catalyzes downward price movements.
The prevailing broad market conditions support bearish developments for NEAR’s price.
Downward pressure overwhelms NEAR
The altcoin trades at $5.13 after losing nearly 14% within the past day.
Chart by Coinmarketcap
The 40% increase in 24-hour trading volume signals intensified trader actions, possibly from sellers.
NEAR exhibits significant bearish momentum. The 4H chart shows the altcoin has plunged beneath the $6.15 – $6.31 supply zone.
That represents a region where substantial sell orders existed, and the concentration often catalyzes notable price dips.
Technical indicators support the downward bias.
The alt prints a death cross – which emerges when the signal line crosses above the MACD line.
The pattern confirms notable bearish momentum behind NEAR’s movements.
Chart by TradingView
Moreover, the Average Directional Index, which gauges the trend’s momentum, highlighted significant bearish sentiments.
It spiked towards 36.68 at press time, signaling a robust bearish bias.
Continued ADX surges with the MADC line beneath the signal line would see extended price dips in the upcoming sessions.
Fibonacci retracement levels support continued dips for NEAR, potentially hitting the $4.87 low amid magnified seller activity.
Losing this foothold would trigger significant dips before potential recoveries.
Near bulls should reclaim the crucial levels at $5.16, $5.39, 5.55, and 5.71 to rescue the altcoin from prolonged downsides.
What triggered the latest crypto flash crash?
Digital assets plummeted over the past day as Bitcoin dipped from above $102K to $95,630 at press time.
The latest labor market statistics triggered the sudden plunge.
Tuesday’s data revealed job openings increased from 7.84 million in October to 8.1 million by November.
That represented the highest figure since May 2023.
Also, JOLTS (Job Openings & Labor Turnover Survey) data showed November had 5.27 million hires, a decline from October’s 5.39 million.
Moreover, the report revealed a 1.9% quitting rate, down from October’s 2.1%. That signals trust among workers.
Also, the rising US bond yields added to the bearish sentiments as they increased the odds of the Fed adopting a more hawkish tone.
Keep an eye on the 10-yr US Treasury yield which jumped to 4.7% yesterday.
It’s up a staggering 1.1% since Sep 2024, even though the Fed has cut rates by 1% since then.
The bond market does not expect rate cuts anytime soon.
This adds to the headwinds for stocks.
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Latest developments reveal only two rate cuts this year, lower than previous forecasts.
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