To Reverse the Downtrend, NEAR Needs to Regain This Zone

    Near Protocol (NEAR) is showing some short-term bullish signs, but the long-term trend remains bearish unless it can break through a key resistance level.

    Weekly potential 

    NEAR has been falling since hitting an all-time high in January and then making a slightly lower peak in April. The downtrend has so far led to a low of $2.87 in June. Additionally, this downward movement caused the price to break below the $7 horizontal zone.

    Related to June low, NEAR made a higher low in August (green icons). If an upward movement happens, resistance from the $7 zone is expected.

    Furthermore, if the uptrend continues, the weekly RSI will reach the descending resistance line that has been formed since September, which is likely to provide resistance.

    NEAR/USDT Weekly Chart By TradingView

    Structure lacking

    The daily chart does not show a clear structure. Although NEAR has been moving along an ascending support line since June low, the line has not been validated sufficient times (green icons). The support line is currently at $3.50 and another validation would add to its validity.

    The key price zone to watch out for is $4.35. This zone has previously acted as a resistance level (red icons) and once the price breaks out, it is expected to provide support.

    However, NEAR was unable to sustain it. Therefore, this zone is expected to provide resistance once again.

    Similar to the weekly RSI, the daily indicator is trading below 50 and could face resistance at 50 if there is a bounce.

    NEAR/USDT Daily Chart By TradingView

    Future movements

    Despite the pullback from the weekly and daily timeframes, the 4-hour chart shows a short-term recovery in price is likely to happen.

    There are two reasons for this point, firstly the bullish divergence that has formed in the RSI and secondly the breakout above the short-term resistance line.

    If the uptrend continues, the first resistance will be at $4.60, while the next is at $5.20, if NEAR succeeds in moving above the first.

    After that, the most likely scenario is the price will be rejected and continue to fall.

    NEAR/USDT 4-hour Chart By TradingView

    (Reference: Beincrypto)

    Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. 

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