NEAR Protocol (NEAR) has broken out the long-term ascending resistance line and formed a bullish pattern, indicating it is expected to continue rising in the near future.
Long-term outlook
NEAR Protocol (NEAR) has fallen below a long-term descending resistance line since hitting its all-time high at $20 in April 2022. During this period, it reached a low of $1.24 in late December and caused a breakdown from the long-term support zone at $1.8.
However, the price recovered shortly afterwards and regained the $1.8 zone, indicating that the earlier breakdown was just a deviation and often leads to a strong uptrend.
Indeed, this uptrend has helped the price breakout the long-term resistance line. This is a bullish development, suggesting that the long-term downtrend may have ended.
The price is currently approaching a strong resistance zone at $2.8, formed by a horizontal resistance zone and the 20-week EMA line. Breaking through this zone would indicate that the trend is up, and the price may rise to the next long-term resistance at $5.8.
Price action supports the possibility of a breakout, as it just formed a bullish engulfing pattern last week.
Ascending triangle
After the recent uptrend alongside the market since the beginning of the year, NEAR has consolidated within an ascending triangle. This is a bullish pattern and often leads to a breakout in most cases.
After bouncing off the triangle’s support line on February 14, NEAR is currently challenging the triangle’s resistance line ($2.8).
The RSI indicator has broken out its descending resistance line. This action often leads to a similar action in price movements. Therefore, NEAR’s price is likely to break out of the triangle and head towards the horizontal resistance zone at $3.4, marking an increase of nearly 30% from the current price level.
Conversely, being rejected could cause the price to test the triangle’s support line at $2.2 again.
The upsloping moving averages and the RSI indicator is above 50, indicating that the path of least resistance is upside.
Conclusion
NEAR’s long-term downtrend may have ended, and the price is likely to break out the resistance zone at $2.8 in the coming days. If successful, it could quickly rise to $3.4 and even higher to the long-term resistance zone at $5.8.
This bullish outlook may be invalidated if the price breaks down below the triangle.
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