NEAR Technical Analysis: Wedge Fallout Warns A Crash To $2.5
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The NEAR price action shows a bearish breakout of a long-coming falling wedge pattern in the daily chart. Additionally, the downtrend breaks the crucial support level of $3.5, unleashing the trapped momentum and approaching the bottom support at $2.5. So, should you consider taking a bearish position?
Key Points:
Source - TradingView
NEAR Technical Analysis
As mentioned in our previous analysis, the NEAR price action shows a growing bearish influence over the consolidation range leading to a downtrend. The falling prices break below the crucial support at $3.5, reflecting a remarkable selling spree.
On further analysis, the price action offers a selling opportunity as the price trend breaks below the falling wedge. Moreover, the spike in teasing volume supports the bearish breakout signaling a downtrend continuation.
Currently, the daily candle shows a lower price rejection and highlights a retest phase of the trendline fallout.
If the selling pressure increases, the layer-1 token’s market price will drop to $2.5 accounting for a 20% decline. Conversely, if the retest phase gains bullish momentum, a reversal will pump the NEAR prices to the 50-day EMA at $3.93.
Technical Indicators
The RSI indicator shows a Declining trend in the nearly oversold zone kissing the oversold boundary, highlighting a bearish power. Moreover, the bearish gap between the Fast and slow lines increased with the bearish histograms.
Therefore, the NEAR technical analysis suggests that the sideline traders can find a selling opportunity at current prices.
Resistance Levels - $3.5 and $3.93
Support Levels - $3 and $2.55