NEAR Technical Analysis: Within Wedge, Buyers Prepare Escape Plan
Table of contents
The bearish retracement in the NEAR prices forms a bearish wedge pattern accounting for a drop of 25% over the last two weeks. However, the recent bullish reversal within the bearish pattern projects the possibility of a bullish breakout. So, should you consider buying NEAR tokens before the bullish breakout?
Key Points:
Source - Tradingview
NEAR Technical Analysis
The NEAR prices display a falling trend in the daily chart after facing rejection from the overhead resistance of $6.5. The correction phase drops below the 100 and 50-day EMA, sabotaging the possibility of a bullish crossover.
However, the recent increase in buying pressure fuels the bull cycle within the falling wedge, increasing the possibility of a bullish breakout. Furthermore, the hike in the intraday trading volume supports the bullish engulfing candle.
If the buying pressure propels the market value above the resistance trendline, the breakout rally can reach the $6 mark. Moreover, the 100-day SMA breakout can jump to the $8 mark. Conversely, reversing from the resistance trendline can result in a price drop to the $3.5 support level.
Technical Indicators
The RSI slope reverses within the nearly oversold zone to cross above the 14-day average line, reflecting an increase in the underlying bullishness.
The MACD indicator shows a positive turnaround in the fast line, reflecting the possibility of a crossover event. Furthermore, the declining trend of the negative histograms reflects weakness in the selling pressure.
Hence, the technical indicators maintain a positive outlook for the upcoming trend in the NEAR prices.
Resistance Levels: $5 and $6
Support Levels: $3.5 and $3