As NEAR slips beneath the $5.5 zone once again, where is it headed next
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
NEAR Protocol has been in a downtrend on the value charts for many of April and all of Might, however the previous few days appeared to supply some hope for the bulls. NEAR noticed a powerful rally from the $4.78 help degree, as Bitcoin additionally broke out previous the $30.6k mark.
Nonetheless, Bitcoin slipped again beneath this degree, and NEAR retraced a great chunk of its latest positive factors as nicely.
NEAR- 1 Hour Chart
Supply: NEAR/USDT on TradingView
The $6.53 degree (dotted white) and the $5.5-$5.7 space (pink field) have been vital sections on the value chart over the previous two weeks, alongside the $4.78 help degree. We will see that the $5.5 zone has acted as help, then resistance, and flipped over but once more as bulls and bears contested this degree.
On the time of writing, it has been damaged and will function a zone of provide on a retest. This break to the draw back got here after a wild surge to $6.5 from the $4.78 lows a few days in the past, an almost 36% transfer upward.
The rejection at $6.5 steered that the value has retested the previous highs, and sellers had been sturdy sufficient to drive a transfer straight downward, and beneath the $5.6 help zone. Due to this fact, it might not be stunning if NEAR slipped beneath the $4.78 degree as nicely within the subsequent week or two. Alternatively, NEAR may set up a spread from $4.78 to $6.5.
Rationale
Supply: NEAR/USDT on TradingView
The RSI sank beneath impartial 50 on the hourly chart. At press time it stood at 32.8 to point out sturdy bearish momentum. The 42 mark has been vital previously on the RSI, and bulls would need to see the RSI climb previous this degree. The Stochastic RSI shaped a bullish crossover and was climbing, to point out {that a} slight pullback upward may happen earlier than one other leg downward.
The OBV soared greater on Monday however subsequently got here crashing down as promoting quantity started to dominate and undo the bulls’ positive factors. In doing so, the OBV slipped again beneath a two-week resistance.
Conclusion
The $4.78 and the $5.5 ranges are prone to act as help and resistance over the following few days, and it was potential that NEAR would set up a spread from the $4.78 lows to the $6.5 highs. Nonetheless, a drop beneath $28.5k for Bitcoin may see NEAR lose the $4.78 help degree.
