NEAR Technical Analysis: Failed Bullish Pattern Teases A Drop To $3.5
Table of contents
Key Technical Points:
Past Performance of NEAR
The Near Protocol (NEAR) price failed to sustain above the $5.69 support level and the 100-day EMA, resulting in a bearish reversal. Over the last week, the prices have dropped from $6.0 to $5.0 without a single bullish candle. Furthermore, the declining price trend breaks the rounding bottom pattern possibility and tests the 50-day EMA.
Source - Tradingview
NEAR Technical Analysis
The NEAR price action displays a bullish candle forming at the psychological mark of $5 and avoiding a downtrend below the 50-day EMA. Hence the possibility of a bullish reversal to re-challenge the overhead resistance at $6.0 remains significant.
Despite the bearish alignment and the bullish failure to sustain above the 100-day EMA, the market price takes support at the 50-day EMA.
The daily RSI slope displays a minor bullish reversal from the halfway line after dropping below the 14-day SMA. Moreover, the MACD indicator signals a rise in selling pressure as the bearish histograms intensify with the recent crossover event in the fast and slow lines. Hence the technical indicators oppose the possibility of a bullish reversal and project a potential downtrend continuation.
In a nutshell, the NEAR Technical Analysis projects the possibility of a drop below the 50-day EMA.
Upcoming Trend
NEAR prices can take a bullish reversal to the $6.0 mark if it sustains above the 50-day EMA. However, a bullish failure might lead to a price drop below the $4.75 mark to retest the $3.5 crucial support level.
Resistance Levels: $6 and $8
Support Levels: $4.75 and $3.5