- NEAR Protocol [NEAR] is on the brink of overcoming selling pressure at a local resistance level.
- Recent market trends have shown bullish sentiment with NEAR performing positively within a descending channel.
- An 11.51% price surge in the last seven days has increased NEAR’s trading price to $4.28, and trading volume has risen by 4.21% to $210 billion.
NEAR Protocol shows promising signs of overcoming resistance and setting trajectory towards $5.3.
NEAR’s Potential Breakout from Descending Channel
Over the past weeks, NEAR has been navigating through a descending channel, characterized by parallel downward-sloping lines connecting lower highs and lowers lows. Recently, NEAR rebounded from the channel’s lower boundary, instigating a rise in its trading price. The critical factor now lies in NEAR’s ability to breach a resistance indicated by the Fibonacci retracement level at $0.454. Successfully passing this resistance might clear a path towards $0.53, where significant selling pressure exists. If NEAR fails to breach this level, it could lead to further declines and the formation of lower lows. However, current market conditions suggest strong bullish action, indicating that bulls are primed to drive prices higher.
Bulls Gaining Ground
The Relative Strength Index (RSI), a tool used to identify overbought and oversold conditions, shows NEAR at a reading of 43.46, suggesting growing bullish momentum. This could propel NEAR to the next notable resistance level. Additionally, the Market Value to Realized Value (MVRV) ratio is currently at 0.727, indicating that NEAR is undervalued. This undervaluation presents a prime opportunity for bullish investments, echoing the strong bullish sentiment in the market.
Increased Market Interest
Another encouraging sign for NEAR is the substantial rise in Open Interest, which measures investor sentiment and market liquidity by disclosing capital movements within the derivatives market. At press time, NEAR’s Open Interest stood at $126.12 million after a 7% increase, signaling heightened investor interest and a steady influx of capital. This uptrend in Open Interest since the 6th of August has been pivotal, with high levels of interest persistently supporting NEAR’s upward trajectory towards the next resistance zone at $0.53.
Conclusion
In conclusion, NEAR Protocol shows promising signs of overcoming its current resistance and continuing its bullish trend. With a strong presence of bulls in the market, increasing trading volumes, and substantial investor interest, NEAR is well-positioned for a potential rally. Investors should monitor the key resistance level at $0.454, as successfully breaching this point could see NEAR targeting the $0.53 mark and beyond. This positive outlook is buoyed by current technical indicators and market sentiment, making NEAR a cryptocurrency to watch in the near future.
