Concentrated Support Stalls NEAR Price Correction

The six consecutive red candles from the $17.5 resistance tumbled the Near protocol(NEAR) price by 23.6%. The bearish reversal breached the bottom support of a three-weeks old range-setup, suggesting another leg-down from sellers. The post-retest rally could pull the altcoin beyond $13.3 support.

Key points: 

• The 20-day EMA flips to viable resistance. 
• The intraday trading volume in the NEAR is $1.4 Billion, indicating a 40% hike.

Source- Tradingview

Over the past three weeks, the NEAR/USDT pair resonated in a definite range, stretching from $17.5 to 15.3. However, despite a range-bound rally, the daily-RSI showcased evident bearish divergence, indicating the sellers are strengthening their grip over the coin. 

Thus, the NEAR price eventually gave a bearish breakdown from the $15.3 support, releasing the trapped bearish momentum. Furthermore, the altcoin witnessed an instant follow-up, and the price plunged 10% lower to $13.3 support. 

Furthermore, the 0.5 Fibonacci retracement level and 100-day MA aligned with the $13.3 mark provide a strong foothold for buyers. A bullish reversal from this support drove the NEAR price back to $15, flipping resistance. 

If sellers revert the NEAR price from the $15 mark, it would indicate the traders are selling on a higher level, and a $13.3 support fallout remains on the cards.

Alternatively, to regain trend control, buyers need to breach two significant resistance of $15 and $17.5.

Technical indicator

The increasing spread between the downsloping MACD and signal lines suggests aggressive selling from market participants. Moreover, these lines preparing to dive beneath the neutral line bring additional confirmation for traders.

With the recent reversal, NEAR buyers lost 20 EMA dynamic support, which has now flipped to valid resistance. However, a bullish sequence among crucial EMAs and the 100-day EMA aligned with $13.5 support provides buyers with a solid defense.

• Resistance levels- $15, $17.5
• Support levels-$13.3, $11.8

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.