Near Protocol (NEAR) Price Retests Previous Key Resistance, What Next?
The Near Protocol (NEAR) price is retesting the previous important resistance level and trading within a bullish pattern. Will it bounce back and continue the previous uptrend?
The Near Protocol (NEAR) price broke above the important resistance level at $2.7 in the week of December 18-24, 2023 with a large bullish candle. This is a very positive development as it shows that the previous long-term downtrend has ended and NEAR price may start a new uptrend.
After reaching a new yearly high at $4.65 in the following week, the NEAR price has retraced. Currently, it is in the process of confirming $2.7 as support (green arrow).
The weekly RSI indicator is above 50 and trending upward, supporting the possibility of a bounce.
If the price bounces, it could reach another yearly high. This number corresponds to a 58.36% increase from the current price.
Falling wedge pattern
The daily chart shows that NEAR price has been trading within a falling wedge pattern since the aforementioned yearly high. This is a bullish pattern that often leads to a breakout in most cases.
Moreover, the wedge’s support line coincides with the long-term rising support line and the horizontal support zone.
Therefore, it is highly likely that the NEAR price will bounce from the confluence point of these support levels and break out of the falling wedge pattern. It could then rise to the nearest horizontal resistance at $3.8.
The most likely prospect shows that the NEAR price will bounce from the $2.7 level. The nearest target for this move is $3.8 and higher to $4.65.
This bullish view will be invalidated if the NEAR price breaks down below the $2.7 level on the daily 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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