The cryptocurrency market continues to display a bearish trend, recording a correction of 1.78% in its global valuation. Nearprotocol (NEAR), however, has defied this trend, marking an increase of 3.45% with a trading volume of $352.5 million, reflecting a change of +87.36%.
Despite the downturn in top tokens like Bitcoin and Ethereum, NEAR has surged by 15.32% this week, demonstrating strong bullish momentum. With a trading price of $4.877, it has secured the 18th position in the cryptocurrency rankings, boasting a market capitalization of $5.31 billion. Analysts anticipate a significant price increase as it approaches its resistance trendline.
The analyst from Worlds of Charts observed a falling wedge pattern on an 8-hour timeframe, suggesting a potential bullish reversal for NEAR. Since mid-May, its price has been within this descending wedge, but recent movements hint at a possible breakout.
The price action shows consolidation signs close to the wedge. The horizontal resistance and support lines illustrate the narrowing range. This restricting range usually is observed before a significant price movement and hints at the imminent volatility.
NEAR Breakout Targets $9
A breakout from the upper trendline of the falling wedge could trigger a bullish continuation. The analyst projects this breakout to push NEAR upwards, which could potentially reach around $9, an 82.66% increase from current levels.
To support this bullish perspective, the analyst highlights the recent increase in buying volume and the stabilization of price movements, which are typical indicators of strengthening bullish momentum. If the breakout occurs as expected, it could signify a new upward trend for NEAR.
In addition, the Simple Moving Average (SMA) displays a bullish crossover in the 1D timeframe, reinforcing a bullish sentiment for NEAR’s price. Similarly, The Moving Average Convergence Divergence (MACD) consistently rises in the green histogram, showing a bullish trend, suggesting a positive outlook.
However, the Awesome Oscillator (AO) remains negative at -0.59954510, indicating that downward pressure persists, with sellers dominating recent trading sessions. The Chaikin Money Flow (CMF) is also negative at -0.09, showing that capital outflows have surpassed inflows, reinforcing the bearish outlook.
Despite the negative indicators from AO and CMF, signs of a potential reversal exist. The AO shows a gradual decrease in bearish momentum, hinting at a possible shift to positive momentum. The CMF, while negative, edges closer to the neutral line, suggesting easing selling pressure.
If the market breaks out of its resistance trendline within the triangle pattern, it could test the upper level of $6.225. Sustaining this level might propel NEAR toward $7.685 this month. However, if bearish forces take over, its price could lose momentum and fall towards its crucial support trendline.
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