Published 9 hours ago
The Near Protocol (NEAR) price shows an 8% jump from $3.75, putting a break in the prevailing downtrend and increasing the chance of a trend reversal. However, higher price rejection in the daily candle limits the bullish possibility and warns of a price fall. So, which levels will be critical to determine the upcoming trend?
Key points from NEAR analysis:
- The NEAR chart shows a V-top reversal from the $6 mark
- High wick rejection attached to daily candle shows supply pres
- The intraday trading volume in the NEAR is $691.5 Million, indicating a 49% gain.
Source- Tradingview
Over the past three weeks, the NEAR price plunged by 33.6.% after facing extreme supply inflow at the overhead resistance of $6. The correction phase breaks under $4.3 and tests the buyers at the crucial demand zone of $3.75.
Additionally, The bearish trend at a breakneck speed found the support of increased trading volume and broke below the 20-day EMA.
Currently, the NEAR token trades at $4 after an overnight bullish reversal from the aforementioned support but the higher price rejection in the daily candle warns of a price dump this week.
However, the token price must show sustainability above the flipped resistance of the $3.75 mark to increase the probability of a jump of 9.3% to $4.3.
Conversely, a price dump below the bottom support of $3.75 will nullify the bullish thesis and lead to a price fall to $3.
Technical indicator
DMI indicator: the bullish reversal in NEAR prices results in a reversal in the Di lines, increasing the crossover possibility. However, the falling ADX line reflects a weak trend momentum.
MACD indicator: the declining trend in the bearish MACD histograms teases a bullish crossover in the fast and slow lines. Hence, the technical indicators suggest a possibility of a prolonged uptrend.
EMAs: the downsloping and 20-and-100-day EMA indicate both long-term and short-term trends in bearish. Moreover, the 20-day EMA offers dynamic resistance to coin price
- Resistance levels- $4.3 and $4.7
- Support levels- $3.7 and $3
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.
Source: https://coingape.com/markets/can-this-8-reversal-from-3-7-level-encourage-near-price-recovery/