Near Protocol (NEAR) Price Breaks Out Of Long-Term Resistance, Is A Strong Rally Happening?
The price of Near Protocol (NEAR) has broken above a crucial resistance level. It is likely to continue rising in the near future.
The price of Near Protocol (NEAR) has risen since creating a deviation below the horizontal support zone at $1.2 (green ellipse). Such deviations are often followed by sharp increases.
Indeed, this increase has helped the NEAR price break above the crucial resistance zone at $1.6 and confirmed it as support last week (green arrow).
Notably, the confirming candle has a long lower wick and significant trading volume. This is a highly bullish development, indicating that the previous downtrend has ended, and a new uptrend has occurred.
The weekly RSI (Relative Strength Index) supports this possibility as it breaks above the long-term resistance line and rises above the 50 level.
If the upward momentum continues, the NEAR price could rise to the next crucial resistance zone at $2.7, which is 60.89% higher than the current price.
Despite the bullish outlook on the weekly timeframe, the daily timeframe suggests that the NEAR price may experience a correction in the coming days.
This is due to the presence of a bearish divergence in the daily RSI indicator (red line). This divergence occurs when the uptrend is not supported by momentum, often leading to a correction.
Therefore, the NEAR price may correct to the 0.5-0.618 Fibonacci retracement zone of the recent uptrend at $1.48-$1.54.
The most likely scenario suggests that the NEAR price will continue to rise in the future. However, it may experience a correction to the $1.48-$1.54 range before resuming the uptrend.
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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