Near Protocol (NEAR) has broken out of the longer term ascending support line, invalidating its bullish structure in the process.
NEAR has been declining since reaching an all-time high of $20.54 on January 14. On 19 February, the price broke an ascending support line that it had previously held since July 2021.
So far, the price is down 58%, reaching a February 22 low of $8.20.
If the decline continues, the nearest support area will lie at $6.40. Haven’t reached this area since December 2021.
continuing near shortage
cryptocurrency trader @AltcoinSherpa Tweeted a chart from NEAR, suggesting that the $8-$12 area could provide strong support.
Since the tweet, NEAR has bottomed out in this area. However, technical indicators are still going through a bearish phase.
MACD and RSI are both declining. Furthermore, the former is negative while the latter is below 50. Both of these are signs of a bearish trend. Finally, there are no signs of a developing bullish divergence, which often precedes a reversal of a bullish trend.
Therefore, the daily time frame outlook favors a continuation of the downside below the $6.40 horizontal support area.
short term movement
Measuring from an all-time high, it is possible that the shortfall is the ABC corrective structure (black). If so, NEAR is currently in C and is the last wave of this reduction.
Giving Waves A:C a 1:0.618 ratio will take it to a low of $6.75, very close to the $6.40 horizontal support area mentioned earlier.
This ratio further adds to the confluence near the $6.40 area and supports the possibility of a downside break. Therefore, if NEAR reaches this zone, the presence of bullish reversal signals will be crucial in determining whether a reversal will occur.
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