NEAR Technical Analysis: Will This Bearish Pattern Plunge NEAR Prices?

The NEAR price chart shows a head and shoulder pattern in action, leading the current correction rally to an even lower level. The neckline for this pattern is the $3.75 mark which has been supporting the coin buyers since last month. Thus, can the buyers defend this level again, or will we revisit the $3 mark?

Key Points:

Source - TradingView

NEAR Technical Analysis

The ongoing correction phase reduced NEAR prices by 53.8%, bringing them to $3.7. However, on the daily timeframe, this V-shaped downfall highlighted the emergence of the Head & Shoulder pattern. This bearish signal causes an overwhelming selling impulse when prices fall below the neckline support. In any case, the NEAR price forms the pattern's right shoulder, which should lead to a test of the $3.75 support.

Earlier today, the coin price increased by 7% and tried a bullish breach from the $4.4 minor barrier. However, the crypto market had a rapid sell-off, and the coin is now down 4% on an intraday basis.

A $4.4 long-rejection candle adds to the fulfillment of the previously described bearish pattern. With further selling, the NEAR price will fall 7% to breach the $3.75 neckline. Consequently, this will set off this price pattern, with the subsequent collapse lowering prices by 20% to the June-July bottom support of $3.

On the other hand, if the NEAR price recovers from the $3.75 level, it indicates that traders are aggressively buying at this level and may retry to break through the $4.75 barrier.

Technical Indicators

Relative Strength Index: The daily-RSI slope reverted from the midline and nosedive below the 14-SMA line, reflecting the bearish market sentiment.

MACD: The fast and slow lines remain trapped after the recent merger failing to start a decisive trend reflecting a power struggle.

Resistance Levels - $4.75 and $5.7

Support Levels - $3.5 and $3