While the NEAR market is experiencing bearish activity, the bulls have picked up their momentum with a recent rally.
The price movement of NEAR has turned positive after the recent bear market activity. Coingecko data shows that the NEAR experienced a series of price increases and decreases before the bulls were charged back on 8 September.
Since the crypto has traded in a green zone over the past 24 hours, the bulls have set their eyes on a profit of 20%.
In the past two days, there have been three notable price movements. There was a big jump on September 7, then a drop later that day. The price continued its climb and reached a new high on 8 September.
According to a recent study, several indicators seem to be in favor of the bulls.
NEAR shows aggressive upward movement
The Near Protocol weekly chart is displaying a “Bullish Bait Harmonic” pattern, indicating an upward trend. On the other hand, in such a bullish pattern the second top is lower than the first.
Analysts interpret this pattern as evidence that the current trend will continue.
The $4.30 range has provided support for an upside move, while $4.60 has provided resistance. But as with any funding, there is always the risk of a downstroke.
Some market observers have warned that a bear breakout at $4.30 would be detrimental to the uptrend. This purely theoretical bear growth rally has the potential to take the price towards $3.80. However, the patterns indicate otherwise.
Moreover, the price formed another reversal sequence. Price exhibited an inverted “head and shoulders” formation.
Bullish reversal seen to regain investor confidence
If the price manages to break its neckline ($4.56) and another resistance of the 50-day exponential moving average, a bullish trend is likely. Then, we can expect the price to revisit its previous swing high and possibly break above it.
After such a bearish period, this recent bullish reversal could help restore investor confidence. The RSI for NEAR is also in the optimum range. If the RSI indicator is consistently in the middle segment, the token is neither overbought nor oversold.
This recent bullish return after an extended bearish period is great news for near-term traders. There could be a potential relief rally for the coin after fears of continued downside.
With this upward trend, this may be the only glimmer of hope in the dreadful crypto winter.
NEAR total market cap at $3.5 billion on the daily chart | Source: TradingView.com Featured image from BingX Blog, chart from TradingView.com