NEAR Protocol Breaks Bearish Trend: Can It Reach $20 Amid Growing Demand?

• NEAR Protocol has recently broken its two-year bearish trend, setting its sights on reclaiming previous all-time highs around $20.

• With significant backing from major industry players like NVIDIA, NEAR’s innovative solutions are rapidly gaining traction in the competitive blockchain landscape.

• “The current trajectory suggests NEAR could capitalize on its advancements to deliver substantial returns,” noted a recent analysis from COINOTAG.

NEAR Protocol is breaking new ground with a bullish trend, reclaiming market interest and aiming for all-time highs. Discover the key support and resistance levels!

Resurgence Potential: NEAR’s Climb Towards $20

NEAR Protocol, currently trading at $6.69, is witnessing a significant shift in market dynamics. Following a break above a long-term bearish trendline, NEAR is poised for an upward trajectory, with analysts optimistic about its potential to revisit all-time highs that reached $20.42 in January 2022. This bullish sentiment is corroborated by a robust 24-hour trading volume of nearly $930 million, demonstrating heightened investor interest.

Technical Analysis: Support and Resistance Levels

A recent analysis by COINOTAG indicates that NEAR faces crucial resistance at $20.00, coinciding with its historical high. The chart patterns reveal a downtrend that has now reversed, encouraging a bullish outlook as NEAR navigates through $8.00, an immediate resistance zone following its current price. Analysts suggest that a breakout above this range could catalyze further growth toward higher price levels.

Source: TradingView

Importantly, a reliable support zone exists near $6.00, a level that has previously acted as resistance. Maintaining this price will be critical for sustaining upward momentum, while further declines could test lower supports primarily positioned at $4.00 and historically at $1.50.

Indicators Suggest a Shift in Momentum

Momentum indicators currently represent a mixed picture for NEAR. The Supertrend indicator reflects a bearish trend with resistance at $7.306. Traders should be attentive to this price level, as a sustained break could confirm a renewed bullish phase. Moreover, the True Strength Index, which remains negative, indicates that while downward momentum prevails, it may be diminishing.

Source: TradingView

The Accumulation/Distribution Line is currently at 18.86 million, suggesting a moderate accumulation of NEAR tokens, indicative of rising buyer interest that could facilitate a rebound.

Volume and Fee Trends Indicate Healthy Growth

The surge in NEAR’s trading volume towards the end of November signifies increasing engagement. With daily volumes achieving peaks above $18 million, this creates robust foundations for further network activity. Coinciding with volume growth, transaction fees have also seen an upward trend, which is a positive reflection of the network’s utility and adoption.

Source: Defillama

Market Liquidations: Short and Long Positions

Examining NEAR’s liquidation map reveals crucial insights into market positions. The current risk profile shows significant long liquidations, especially if prices breach $6.67. This area represents critical psychological and technical resistance; thus, traders are closely monitoring potential volatility dynamics.

Source: Coinglass

Conversely, bear positions appear less concentrated, signaling a current market bias toward bullish trading. A critical resistance breakout could unleash a wave of liquidations on long positions, emphasizing the need for traders to exercise caution.

Conclusion

In summary, NEAR Protocol’s recent developments offer a promising outlook with potential for robust growth. The combination of increased network activity, strong technical indicators, and solid market support points toward a possible reversal in momentum. Investors should remain vigilant and consider these factors when evaluating NEAR’s next moves in the crypto market.