NEAR price set up a triple tap setup, signaling a bottom reversal in the near future. The third tap has already led to a quick upswing, but the bulls have a long way to go. Interested investors can capitalize on this run-up.
A textbook bottom reversal pattern
NEAR price set up a swing low at $9.52 on 24 January, leading to a 47% ascent in the next two weeks. This run-up retraced completely and deviated below the aforementioned swing low. But quickly recovered and embarked on another run-up that led to 61% gains. The third and the latest retest of the $9.52 support level gave rise to a triple tap setup and has led to a 25% ascent but is currently hovering around $11.01
This bottom reversal pattern often contains a central dip lower than the other two dips, which are usually hovering around the same trend line. The setup also forecasts a reversal in a downtrend and kick-starting a rally.
Investors can expect NEAR to rally at least 28% from its current position and tag the $14.22 hurdle. However, if the buyers manage to flip the $14.22 barrier into a support level, it would open the path for the bulls to propel the altcoin to $16.10.
Assuming NEAR retests the $16.10 hurdle, it would constitute a 46% ascent from the current position.
Source: TradingView, NEAR/USDT 4-hour chart
Supporting the bullish outlook for NEAR is the recent spike in on-chain volume from 424 million to 837 million between 8-11 March. This sudden uptick pushed the volume well above the 200-day moving average at 623, serving as a confirmation of the inflow of funds into the NEAR blockchain.
NEAR on-chain volume chart
Additionally, the social volume metric provides a tailwind to the bullish thesis by showing a recent spike from 85 to 573. This index increased nearly sevenfold in a span of five days. Thus, indicating that the retail interest in the NEAR token has surged.
After an exponential upswing, these spikes in social volume can be used to identify local tops. However, considering that the crypto markets have been correcting for months, this uptick is an indication of the bullish things to come for NEAR.
NEAR social volume chart
While things are looking bullish for NEAR a four-hour candlestick below the $9.52 support level will create an additional tag, invalidating the bullish thesis.
