The failed attempts of NEAR price to breach the $17.7 resistance triggered a minor pullback to the $15 mark. This psychological level aligned with 20-day EMA dynamic support provided a dip opportunity for long traders, and surged the altcoin by 10%. If buyers overcome the negative influence of the RSI indicator, the coin price would reclaim the $17.7 mark.
Key points:
- The RSI slope displays negative divergence in the daily time frame chart
- The 20-day EMA gives pullback to support to NEAR price
- The intraday trading volume in the NEAR is $1.09 Billion, indicating a 36% hike.
Source- Tradingview
The NEAR/USDT pair gradually rises under the influence of the rounding bottom pattern. The recovery rally reached the $17.7 mark, its highest level in the past 11 weeks. However, the buyers struggle to overcome this resistance, indicating a strong supply region ahead.
Last weekend, the crypto market witnessed a significant sell-off which triggered a minor correction in NEAR price. The 15% retracement hit the rising 20-day EMA and stalled the sellers at $15 psychological support.
As a result, the NEAR price rebounded from the 20 EMA support with a morning star candle and continued its charge to All-Time High resistance at $20.6.
Furthermore, the rounding bottom pattern would encourage buyers to breach the ATH resistance($20.6).
Technical indicator
The rising 20-day EMA provides dynamic support to the NEAR rally. Until this support EMA is intact, the traders’ can maintain a strong bullish sentiment.
However, the RSI slope displays a lower low formation in contrast to trending price action. This bearish divergence indicates weakness to the bullish rally, which could trigger a longer price correction.
- Resistance levels- $17.5, $20.65
- Support levels- $13.3 and $10
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/near-price-prediction-20-ema-reinforce-near-buyers-to-break-17-7/