NEAR fights through $4.7, bulls may look to take profits here
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
The NEAR protocol has seen fairly steady trading volume over the past two weeks, although the price has increased by about 30% and over the same time period.
Does the lack of spike in trading volume indicate a lack of demand NEARLY? On the price chart, the token can hold a significant support area. Here are some levels where bulls can run out of breath.
NEAR- 1-Day Chart
As for the long-term outlook for NEAR, the most important neighborhoods for NEAR are at $6.50, $4.7 and the $3.6 region. The $6.5 area acted as support in May but the selling pressure was simply too strong to hold.
At the end of May, this level was retested as resistance. In the coming weeks, the $6-$6.50 area is likely to create a stiff resistance for the price.
Another key support is at $4.68. Since June, this area has taken an important position on the daily chart. In particular, at the end of July, the bears firmly defended this area.
The breakout through this area was strong, but the reversal in August was brutal. The price fell as soon as it broke through this belt and dropped to the $3.6 demand zone. This area was a bearish block in July but has since turned into support.
The bounce from $3.6 and a rise to $4.7 for support is encouraging. A move back to the $6-$6.50 area is likely to be NEAR and could be used to take profits.
Theoretical basis
The RSI has attempted to return above the neutral 50 level after a strong rejection in August. However, despite the strong upward momentum, buying pressure is still absent. OBV failed to form new high.
If OBV can break above the highs from August, it will indicate the presence of massive demand for NEAR. The Chaikin cash flow increased excessively +0.05, showing a large inflow of capital into the market.
Taken together, the indicators show some upside momentum and buying pressure, but still not enough to justify the expectation of a break above $6.50.
Inference
The $4.68 level is important on the lower time frame, while the $3.6 level is important on the higher time frame for the bulls. The bearish fortress at $6.50 can be beaten. However, NEAR buyers would be wise to take profits at that level as it has been a significant level for over a year now.
Sep 14, 2022
