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NEAR Protocol’s recent breakout has captured attention, aiming for a price target of $9 as bullish momentum gathers after a sustained downtrend.
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With a notable increase of 6.69% this week, NEAR is drawing interest as on-chain data reveals significant accumulation trends, prompting strategic trader positioning.
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According to a recent COINOTAG report, “The cyclical bullish movement observed indicates traders anticipate upward trends alongside declining selling pressures.”
NEAR Protocol rallies towards $9 after breaking a long-term downtrend. Traders eye accumulation amid strategic positioning and resilient market dynamics.
Breakout: A New Bullish Phase for NEAR Protocol
NEAR Protocol recently broke out from a descending channel, marking a critical shift in its market sentiment. This breakout occurred mid-October, transitioning from a prolonged period of lower highs and lower lows since May 2023. Currently trading at $6.28, NEAR has demonstrated a robust presence with a 24-hour trading volume of $1.18 billion and a market capitalization reaching $7.67 billion. The price trajectory suggests a decisive end to bearish trends, positioning NEAR for potential awards in the coming week.
Market Reaction and Resistance Levels
After touching $7.00, NEAR faced a slight pullback, typical of market reactions post-significant rallies. Despite this minor setback, the upward trend is maintained, characterized by a sequence of higher highs and higher lows – a promising indicator of ongoing bullish sentiment. A clear focus remains on the key resistance zone of $7.50–$8.00, with a successful breach of this range paving the way for ambitious targets nearing $9, reinforcing confidence among bullish traders.
Technical Indicators Suggest Potential Consolidation
As NEAR enters a phase of consolidation, key technical indicators offer insights. The Relative Strength Index (RSI) currently stands at 61.54, signaling a correction from previously overbought levels, potentially providing a launchpad for renewed upward momentum. Concurrently, the MACD remains firmly in bullish territory, encouraged by a positive crossover that suggests the uptrend is poised for continuity.
Recent trading volume has dipped slightly, revealing less activity following NEAR’s impressive price movements. A recovery in trading volume will be crucial to confirming ongoing bullish trends as NEAR approaches its immediate resistance levels.
On-chain Insights Indicate Accumulation Trends
An analysis of on-chain data presents an insightful perspective on NEAR Protocol’s market dynamics. Recently, Futures Open Interest decreased by 12.97% to $393.88 million, indicating reduced leveraged positions as traders take profits or exit their holdings. Despite the decline, this elevated Open Interest signifies strong market participation, underscoring NEAR’s heightened interest among traders for future developments.
The spate of spot netflows reveals outflows totaling approximately $6.39 million, implying that tokens are being withdrawn from exchanges. Such behavior often suggests accumulation by dedicated holders and signals diminished selling pressure, corroborating NEAR’s bullish ascendancy.
As the market evaluates these developments, NEAR’s trajectory appears set for sustained bullish momentum, provided critical support levels hold firm in the upcoming sessions.
Conclusion
In summary, NEAR Protocol is witnessing an impressive rally in the wake of a significant breakout from a prolonged downtrend. By holding above critical support levels and navigating through resistance zones, NEAR may find itself advancing towards the $9 target. As traders remain vigilant, the implications of on-chain analytics and technical signals may play a pivotal role in shaping future movements in NEAR’s price.
