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NEAR faced rejection at this zone but investors needn’t worry, thanks to…

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NEAR faced rejection at this zone, but here is why the price could finally make a breakout

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

On the higher timeframes, NEAR Protocol has a bullish market structure. It appeared to form a range in the past three weeks between $15.2 and $17.75. Could this be a phase of distribution for NEAR, or was the price set to rocket past the $17.7 zone of resistance?

NEAR- 1 Day Chart

NEAR faced rejection at this zone, but here is why the price could finally make a breakout

Source: NEAR/USDT on TradingView

Based on the downward move from $20.59 to $7.38 earlier this year, a set of Fibonacci levels (pale yellow) was plotted. It showed that the 78.6% retracement level for this move lay at $17.7, and the 61.8% level at the $15.55 level.

Hence, these are levels of technical importance in the days to come. Sellers would want to look for shorting opportunities, while buyers would be waiting for a breakout beyond $17.7 to buy. Moreover, there is a horizontal resistance level at $17.67, adding confluence to the idea of bearish strength.

On NEAR’s recovery from the $7.4 lows, there has been strong buying demand. Zooming out further, it can be seen that NEAR has been forming higher lows on the chart going back to July 2021.

In the event that NEAR can close a daily session above $17.7, it would be likely that the bulls can drive prices toward $20 and $24.

Rationale

NEAR faced rejection at this zone, but here is why the price could finally make a breakout

Source: NEAR/USDT on TradingView

The RSI has remained above neutral 50 over the past month, indicating an uptrend in progress. In the past two weeks, the bullish momentum has waned as NEAR tested the $17.7 resistance zone. The Awesome Oscillator also formed red bars on its histogram for much of April so far to indicate a pullback, rather than bearish momentum.

The OBV has been climbing throughout April and did not see a severe dip in recent days. This suggested that buying volume continued to outweigh selling volume.

Conclusion

In early March, the price reclaimed $10 as a support and showed that the previously bearish market structure was about to be broken. In recent days, the structure has been bullish and a drop below $14.6 would need to be seen before the structure favors the bears once more.

On the other hand, a session close above $17.7 could see NEAR extend toward $20 and $24. The high buying volume in recent weeks suggested that this was a more likely scenario to unfold.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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