NEAR Protocol (NEAR) Price Could Rise Strongly Upon Reclaiming This Level
The price of NEAR Protocol (NEAR) has broken below an important horizontal support area but is showing some bullish signs. A recovery to the horizontal support area could lead to a strong rally.
Important support
The price of NEAR Protocol (NEAR) has been trading below the 20-week EMA ($2.13) since May 2022. This level has rejected the price multiple times and led to the lowest point at $1.24.
The price has rebounded from the low and broke above the horizontal resistance zone at $1.7, but it continued to be rejected by this level throughout February and once again in April 2023 (red arrows). This is a bearish signal as the 20-week EMA is often used to determine long-term trends.
Subsequently, the price of NEAR has broken down below the $1.7 level, which was expected to provide support after the breakdown. Therefore, the price of NEAR may continue to decline towards the yearly low at $1.24.
The RSI indicator supports this outlook as it is below 50 and trending downwards.
Daily outlook
Despite the bearish signals on the weekly timeframe, the daily chart is showing some bullish signs.
Firstly, NEAR price has bounced off the minor support area at $1.5 and formed a cluster of bullish pin bar candles. This indicates strong buying pressure at lower levels.
Secondly, the RSI indicator has bounced up from the oversold area and broken above the downtrend line. This suggests that the downward trend has weakened.
Therefore, there is a possibility that the price of NEAR will reclaim the $1.7 support zone and create a false breakdown on the weekly timeframe. If so, it could surge towards the 20-week MA at $2.13.
Conclusion
The most probable outlook indicates that the price of NEAR will recover to the $1.7 support zone and rally thereafter. This perspective would be invalidated if the price breaks down below the $1.5 level.
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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