NEAR Price Analysis: Bullish Pattern May Shoot Recovery Rally to $5.6

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The Near protocol (NEAR) price shows the formation of a double bottom pattern in the daily time frame chart. Today the altcoin has surged 11% and showcases a decisive breakout from the neckline resistance of $4.24. The expected retest should offer an entry opportunity to interest traders.

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Key points: 

  • The NEAR price rally reclaims 20 and 50 DMA
  • The $4.2 breakdown would continue the price consolidation
  • The intraday trading volume in the NEAR is $517.3 Million, indicating a 77.5% gain.

TradingView Chart

Source- Tradingview

From May 13th to July 6th, the NEAR/USDT technical showcased a steady downfall under the influence of a falling parallel channel pattern. Furthermore, the downfall witnessed intense demand pressure at the $3 mark and has prevented further falls since last month.

Moreover, On July 7th, altcoin gave a bullish breakout from the overhead resistance trendline offering an early sign of recovery. The post-breakout pullback retested the $3 mark and validated it as legitimate support. 

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On July 13th, the NEAR price rebounded from the mentioned support and surged 38.81%, hitting its current price at $4.49. Moreover, the new recovery rally completes the formation of a double bottom pattern with a neckline breakout of $4.24.

However, the buyers need a daily candle closing about this breached resistance and with a significant volume spike to confirm a genuine breakout. If these criteria are met, the buyers will obtain a stable footing to extend the ongoing recovery. 

The potential rally should pierce the $4.7 resistance and sour 24.5% higher to hit the $5.6 resistance.

Technical indicator

OBV indicator: A sharp rise in OBV slope following a bullish divergence reflects the strong interest of traders towards bullish trade. This increases the chances of a sustained recovery rally.

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Bollinger band indicator: the NEAR price breached the indicator’s upper band reflects a sudden buying in the market. Thus, the price may consolidate above the $4.2 mark for a few trading sessions to stabilize this buying pressure.

  • Resistance levels- $4.8 and $5.6
  • Support levels- $4.2 and $3.88

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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