Near Protocol (NEAR) Price Surges, Reaches 5-Month Resistance Again: Will It Break Out?

Near Protocol Price Surges, Tests 5-Month Resistance

Near Protocol (NEAR) has witnessed a significant price increase of nearly 20% in the past three days, fueling speculation of a potential extended rally. However, a close examination of price action suggests that the overall sentiment remains bearish, as NEAR's price continues to fluctuate within a descending channel.

This pattern has constrained price movement to a downtrend, resulting in lower highs and lower lows since May. Should this pattern persist, NEAR could experience a decline of over 30%, forming a new lower low.

Potential Breakout from Descending Channel

A breakout from the descending channel's upper resistance level could indicate a breakthrough, as this level has consistently acted as a resistance barrier for the past five months. Such a breakout would generate bullish pressure as traders capitalize on buying opportunities.

Breakout Probability

Assessing the likelihood of a breakout becomes imperative as the price reaches the resistance point once more. The Relative Strength Index (RSI) stands at 57, indicating ample room for price appreciation with increasing bullish momentum. This metric supports further price growth since bulls may be less apprehensive about price retractions.

The 50-day Simple Moving Average (SMA) currently provides support for the price, suggesting short-term control by buyers. Nevertheless, the medium-term 100-day SMA remains above the price, precisely at the formidable resistance point.

These indicators present mixed signals, with the RSI indicating potential price growth in the event of bullish momentum. The 50-day SMA supports further price appreciation, while the 100-day SMA may present potential resistance.