Near Protocol (NEAR) price is trading with a bullish bias and has completed a full swing recovery following a 10% drop. However, the rebound may be curtailed as bears align to offload NEAR token.
NEAR Investors See Potential
NEAR price, trading at $7.4 at the time of writing, has witnessed massive support from its investors. However, these altcoin coin enthusiasts have added NEAR to their wallets, bolstering the ongoing rally.
After a 30% recovery rally from the April 13 low of $4.27, the Near Protocol price looks primed for a correction. In addition, with a substantial supply zone hovering above the price between $6.98 and $8.90, the altcoin could undergo a 10% correction to find initial support around the $6.00 psychological level.
What’s interesting is the NEAR network’s daily transactions which just established a new ATH. Additionally, the intrinsic stability of the price range, coupled with an increase in activity, signifies the potential of the NEAR ecosystem. On the one hand, this is an indication of the market’s recovery, but on the other, the emergence of a death cross in the Exponential Moving Average (EMA) lines is a cause for alarm. Moreover, a death cross, by definition, is often regarded as a sign of bearish trends, which can be interpreted as a potential sentiment shift and a phase of price consolidation on the horizon.
A series of bearish spikes on the volume profile could indicate a potential trend reversal from bullish to bearish, signaling a shift in market sentiment and direction. For confirmation, traders should watch to see whether the Relative Strength Index (RSI) produces a lower high below the ‘50’ mean level on the daily timeframe. In a dire case where the $6.00 level fails to hold as support, the Near Protocol price could extend the decline to the 50-day Smooth Moving Average (SMMA) at $5.31, or worse, test the $5.13 support level before a recovery.
Bullish Market Sentiment
On the flip side, if the bulls manage to break above the bearish cloud, confirmed by a daily candlestick close above the midline of the supply zone at $7.95, it would negate the bearish thesis. However, such a directional bias could see the token’s price extend the gains to reclaim the $9.01 range high. Consequently, it would result in the altcoin witnessing further growth in price as the potential of profits would drive more investors to the coin. This would also encourage existing NEAR holders to HODL instead of sell.
Looking forward, the outlook remains positive for NEAR Protocol and its native token, NEAR. With its expanding ecosystem of dApps, growing user base, and continual innovation, NEAR Protocol is well-placed to sustain its momentum and strengthen its position as a pivotal player in the cryptocurrency space. As the broader altcoin rally continues to unfold, it stands out as an exemplar of how blockchain technology can unlock new opportunities and reshape the digital landscape for years to come.
