The Near Protocol (NEAR) is showing some short-term bullish signs, but the longer-term trend remains bearish until a key resistance level is reclaimed.
NEAR has been declining since reaching its all-time high in January and then making a slightly lower high in April. The downward movement has so far reached a June low of $2.87. Besides, there was a break below the $7 horizontal zone for the downside.
Relative to the June lows, the price made a higher low in August (green sign). If there is an upside move, the $7 area would be expected to provide resistance.
Moreover, if it were to move upwards, the weekly RSI would reach its descending resistance line that has been in place since September. This line will also likely provide resistance.
lack of structure
The daily chart does not show a clear structure. While it is possible that NEAR is following an ascending support line since its June low, the line has not been validated enough time (green sign). The line is currently at $3.50 and another verification would confirm this.
Currently, the price is trading below the $4.35 horizontal resistance area. The line previously acted as resistance (red sign), and was expected to provide support once the price broke through.
However, NEAR failed to hold it up and broke down once again. In such a situation, it is expected that this area will once again provide resistance.
Similar to the weekly RSI, the daily is trading below 50 and the line is likely to face resistance in case of a bounce.
near future movement
Despite bearish on the weekly and daily time frames, the four-hour chart shows that an early rally is expected.
Two reasons for this are a bullish divergence in the RSI and a breakout from the short-term resistance line.
If the upward move continues, the first resistance will be at $4.60, while the next one will be at $5.20 if NEAR manages to break above the first resistance.
Later, the most likely scenario suggests that the price will be rejected and continue to decline.
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