After Arthur Hayes announced he had sold his entire NEAR position, the market reacted swiftly. NEAR dropped 24.42% in a single day, with trading volume surging to $1.16 billion, indicating intense trading activity during this decline.
The rationale behind this statement was not solely focused on NEAR itself. The report mentioned that Hayes expressed concerns about AI IPO valuations and rising energy costs, but traders still interpreted it as a cautious signal, making NEAR the focus of the market.
Spot buying pressure continues to absorb.
Despite the rapid price pullback, the market did not experience a one-sided exodus. With increased trading volume, buying pressure remained at lower levels, indicating that some buyers continued to enter during the decline.
Data shows that active buying in the spot market still holds an advantage. This means that even as prices decline, traders continue to buy at market price, attempting to absorb some of the selling pressure.
$2.09 becomes a key level
From a price structure perspective, NEAR has pulled back to around $2.09. This level previously served as resistance but was converted into support by buyers during the May rebound, making its current performance particularly critical.
As of the report, NEAR remains above this level, temporarily avoiding a deeper breakdown. The next significant resistance is near $3.
The Relative Strength Index (RSI) has also cooled down. Previously, the indicator rose above 80, then quickly dropped to around 52.20, indicating that the previously overheated trading conditions have eased.
Clearing dense zones or amplifying volatility
Clearing data shows that significant liquidity is concentrated between $2.55 and $2.63. If buying pressure re-emerges, price movement toward these levels could trigger a wave of short liquidations, further amplifying volatility.
Below, another significant liquidity zone exists near $2.05, close to the current support level. Once this zone is breached, the market may experience another wave of forced liquidations.
Overall, NEAR has not lost all buying interest after the sharp decline, but its short-term direction still depends on whether it can continue to find support near $2.09 and whether upward liquidity can attract price recovery.