NEAR Technical Analysis: Downfall Soon To Test The 200-day EMA
NEAR Protocol is a layer-one blockchain designed to be a cloud computing platform run by the community and removes certain limitations that have plagued other blockchains. Some examples of such limitations are the slow speed of transactions, slow throughput, and insufficient interoperability.
The protocol makes use of the Nightshade technology to increase transaction speed by a huge amount. Nightshade is a variant of sharding that lets each set of validators process transactions simultaneously across several chain shards. Thus, increasing the overall performance of the Blockchain.
Let us move ahead to read about Near Protocol technical analysis.
Past Performance of NEAR
NEAR token price fell more than 10% in the past 72 hours with a morning star pattern near $13.75. The downfall cracks into the support zone at $12 with a bearish engulfing candlestick in the daily chart. Moreover, the price surpasses the 50 and 100-day EMA projecting growth of bearish sentiments.
NEAR Technical Analysis
The NEAR coin price breaks below the $12 mark and hangs tight in the support zone below. However, the rising trend momentum indicates a high likelihood of a bearish fallout. Hence, traders can find selling opportunities shortly.
The Stochastic RSI indicator shows a steep fall in the K and D lines as they cross below the overbought zone after the bearish crossover. Thus, the bearish cycle indicates a downfall below the $11.5 mark.
The MACD indicator shows a sharp reversal in the fast line resulting in an increased possibility of a bearish crossover with the slow line. Moreover, the bullish histograms struggle to maintain the uptrend.
The crucial Exponential moving averages struggle to maintain a bullish trend as the NEAR token prices break below the 50 and 100-day averages. Thus, increasing the chances of a bearish crossover. However, the 200-day EMA provides dynamic support to keep the uptrend in action.
In conclusion, the technical indicators project a high likelihood of a downfall below the $12 support zone.
Upcoming Trend
The NEAR coin price may soon break below the $12 support as the trend gains momentum. Moreover, the falling market increases fear among investors that in turn increases the profit booking cycle.
Therefore, the upcoming trend may shortly reach the $10 support level that coincides with the 200-day EMA, which can push the price higher back. On the opposite side, the resistance levels are at $14 and $16.