NEAR Protocol (NEAR) Price Could Drop More Than 40% From Current Prices
The price of NEAR Protocol (NEAR) has broken below a crucial long-term support area and is showing signs of weakness. It may test its all-time low at $0.6.
Important Support Zone
The price of NEAR Protocol (NEAR) has continued its long-term downtrend since reaching a yearly high of $2.8 in February 2023. This action brought the price to a significant support zone at $1.2 in June, forming a potential double bottom pattern. This is a bullish pattern that often leads to a trend reversal.
However, instead of a strong recovery, the NEAR price broke below the $1.2 support zone and confirmed it as resistance at the end of August. This invalidated the bullish pattern and created a bull trap.
The weekly RSI (Relative Strength Index) also broke below the bullish divergence line, supporting the continuation of the downtrend.
As a result, the price of NEAR may experience a sharp decline towards the all-time low of $0.6 in the near future. This represents a 46% decrease from the current price.
Short-Term Outlook
The daily RSI has created a bearish divergence. This occurs when momentum is rising, but prices are forming lower highs. It indicates that bears are actively selling during minor rallies, and a sell-off may occur soon.
Due to the lack of a strong horizontal support zone below the current price, the Fib retracement levels are used to identify potential support levels.
If the price breaks below the minor support at $1.06, it could decline to the 1.618 Fib retracement level at $0.87.
Conclusion
The most likely outlook suggests that the price of NEAR will continue to decline in the near future. The nearest targets are $0.87 and potentially as low as $0.6.
This bearish view could be invalidated if NEAR reclaims the long-term support zone at $1.2 on a weekly timeframe.
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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