Posted 59 minutes ago
The NEAR price chart shows a head and shoulders pattern in action, driving the current corrective rally to an even lower level. The neckline of this model is the $3.75 mark that has been supporting coin buyers for the past month. So, can the buyer defend this level again, or will we get back to the $3 mark?
NEAR price analysis key points:
- NEAR price dipped below the 0.618 Fibonacci retracement level
- A bearish reversal from $4.44 helps sellers complete the head and shoulders pattern.
- Intraday trading volume in the NEAR is $415.5 million, indicating a gain of 170%.
Source- Commercial view
The recent correction sent prices down 53.8% and plunged to $3.7. However, this V-shaped reversal revealed the formation of the Head & Shoulder pattern in the daily timeframe chart.
This bearish pattern triggers intense selling momentum once prices break down from neckline support. Either way, the NEAR price breaks through the formation of the right shoulder of the pattern, which should lead the price to reach the $3.75 support.
Earlier today, the coin’s price jumped 7% and attempted a break-up from minor resistance at $4.4. However, the crypto market faced a sudden sell-off; thus, the coin is down 4% intraday.
A long rejection candle of $4.4 reinforces the completion of the bearish pattern mentioned above. With sustained selling, the NEAR price will dive 7% to break the $3.75 neckline.
This will trigger this price setup, and the resulting drop will send prices down 20% to reach the June-July low support of $3.
On the contrary, if the NEAR price rebounds from the $3.75 mark, it would indicate that traders are actively buying at this level and may retry breaking through the $4.75 resistance.
Relative Strength Index: the daily slope of the RSI returned from the middle line and dipped below the 20-SMA line, reflecting the bearish sentiment of the market.
Tourbillon indicator: a bearish cross between the VI+ and VI- slopes offers a sell signal to accentuate the price reversal from the resistance of $3.75.
EMA: The price of the coins is facing dynamic resistance from the 20- and 50-day EMAs, indicating an aggressive fall.
NEAR intraday price levels
- Cash rate: $4,078
- Trend: bearish
- Volatility: Low
- Resistance Levels – $4.4 and $4.75
- Support levels – $3.75 and $3
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.