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Near Protocol (NEAR) Price Bounced Up Previous Resistance: Is the Correction Finally Over?

The price of Near Protocol (NEAR) bounced up from the previous important resistance zone and traded inside a bullish pattern. A breakout would confirm that the correction has ended.

Weekly outlook

The price of Near Protocol (NEAR) broke above the key resistance zone at $2.7 in the week from December 18 to 24, 2023 with a large bullish candle. This is a very positive development as it shows that the previous long-term downtrend has ended and the price of NEAR could start a new uptrend.

Although the price of NEAR declined after reaching a new yearly high at $4.65 in the last week of 2023, it bounced up from the $2.7 zone in the previous week and created a long wick below (green arrow). This is a sign of buying pressure, indicating that the sentiment has shifted from selling on rallies to buying on dips.

The weekly RSI stopped declining and stayed above 50, suggesting that the bulls are trying to regain control.

If the price continues to recover, it could rise by 58.30% to the yearly high again.

near-bounced
NEAR/USDT weekly chart . Source: TradingView

Bullish pattern

The price of NEAR traded inside a descending wedge pattern since the yearly high mentioned above. This is a bullish pattern, which usually leads to a breakout in most cases.

After bouncing up from the support line of the wedge on January 23 (green arrow), the price of NEAR is currently trying to break above the wedge.

The daily RSI broke above the resistance line and sloped up, showing that the bulls have regained control in the short term.

Moreover, such breakouts in the RSI often lead to similar breakouts in the price action.

Therefore, the price of NEAR is likely to break above the current pattern and rise to the next horizontal resistance level at $3.6.

NEAR/USDT daily chart . Source: TradingView

Conclusion

The most likely scenario suggests that the price of NEAR will break above the wedge and rise higher. The nearest target for this movement is $3.6 and higher to $4.65.

This bullish view will be invalidated if the price of NEAR breaks down below the $2.7 zone on the weekly time frame.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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