The crypto markets have had a rough second half of the week after it emerged that popular crypto bank, Silvergate was evaluating whether it could stay viable. As a result, Bitcoin dropped by around 6.1% from comfortable levels above $23,400 to a local low of $21,971.
Near Protcol’s 100-day Moving Average Could Provide an Area for a Bounce for NEAR
The anxiety surrounding Silvergate has caused widespread selling in the crypto markets, with Near Protocol (NEAR) dropping by 10% from the $2.25 price area to a local low of $2.02. The one-day NEAR/USDT chart below, courtesy of Tradingview.com, confirms the ongoing selling of the digital asset.
In addition, NEAR/USDT is trading below the 50-day (white) and 200-day (green) moving average, hinting at a bearish outlook. Its daily MFI (green), MACD and RSI (red) further confirm a bearish environment for NEAR that should continue until mid or end next week.
In this case, NEAR’s 100-day (yellow) moving average around the $1.97 price area should provide adequate short-term support and possibly trigger a reversal to the upside.
However, caution is advised as the Silvergate situation continues to unfold. A likely outcome would be for Silvergate to seek external funding to stay afloat or a bailout from other banks, as crypto community member @AP_Abacus hinted in the following tweet.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.UPDATE: Internal rumors at Silvergate $SI that Citadel could step up and bail them out; cash infusion where capital shortfalls exist.
**Citadel Securities is the worlds largest market maker and owns 5.5% of Silvergate Bank $SI.
— Andrew (@AP_Abacus) March 3, 2023