The NEAR protocol is showing bullish momentum with a breakout of the $4.7 support area.
- NEAR bullish momentum seems to be waning
- Price shows low trading volume
- $4.51 . near value trading
However, looking at the price action, it looks like the bulls may be out of luck.
NEAR, on the other hand, appears to have more or less trading volume even though the altcoin has posted gains of around 35% over the same period. So, does this mean faltering demand for NEAR?
From a long term perspective, resistance and support for NEAR can be found anywhere near $3.7, $4.5, and $6.8; respectively.
Basically, the $6.8 area acted as a support zone in May, but the selling pressure was too much to control. This level was retested in late May, but with no luck.
$6 level poses hurdles near price
In the coming weeks, it is more likely that the $6 level will pose some hurdles in the price. Moreover, the $4.7 area is another important support level as this area has been important on the daily chart since June and July.
While breaking this zone was unprecedented for the NEAR protocol, August was ruthless with a reversal and a seismic price crash.
The RSI for NEAR has been pushed above the neutral 50 zone after the rejection experienced last month. Despite the rally, the buying pressure has weakened. Besides, OBV also remained sluggish and unfortunately did not make any new highs.
Now, if OBV can successfully surpass its highs recorded in August, it will validate the strong demand for the NEAR protocol. Additionally, Chaikin Money Flow or CMF has also crossed +0.05 revealing huge capital inflow of NEAR.
Need for more buying activity
Overall, the technical indicators are showing some bullish and intense buying activity, but this may not be enough to validate a move that is overshadowing the $6.8 area.
According to CoinMarketCap, NEAR price is trading at 9.05% or $4.51 as of this writing. The current stats are optimistic and in stark contrast to the remarkable performance of NEAR over the past few days where the altcoin has registered a rise of 9.5%.
The trading volume has seen an increase of up to 36% compared to its slower pace last week.
NEAR total market cap at $3.36 billion on the daily chart | Source: TradingView.com Featured image from The Market Periodical, Chart: TradingView.com