Near Protocol (NEAR) price triggered a breakout from a falling wedge pattern and rose by 16% in a day. Since March, buyers have lost momentum and sellers have dominated. It has declined by facing resistance from a descending trendline.
The bearish trend was halted near the $3.50 mark and buyers took the charge as per technical indicators. Since August, the NEAR price has managed to defend the $3.50 mark twice and has gained around 50% in less than 3 weeks.
The price has smashed the key moving averages with strong bullish momentum and the trading volume has also increased. This breakout is supported by many factors, let’s see how it performs.
NEAR Price Has Shaped a Falling Wedge Pattern
Near Protocol traded at $5.15 at press time which has remained neutral over the past 24 hours. The market capitalization was $5.92 Billion and the 24-hour trading volume was $727.56 Million. It ranks 11th in the cryptocurrency market in terms of 24-hour trading volume.
Buyers have attempted many times to exceed the trendline but sellers were strong enough. After facing resistance from the trendline, it witnessed strong selling pressure.
The NEAR crypto price chart has displayed a beautiful breakout and has the potential to perform positively. If the digital asset price remains strong over the 200-day EMA, buying pressure can be anticipated. Once the trading volume supports this momentum, it may easily approach the $10 mark by October.
Alternatively, if the NEAR crypto price fails to exceed the recent high and forms a bearish candlestick, it could spook buyers. If the price slips below the 200-day EMA, sellers may show interest in the lower high territory. Selling pressure in the lower high zone could lead to a loss of around 30%.
Based on the technical indicators, the RSI has witnessed a bullish divergence which could invite buyers. The MACD has developed a bullish crossover with the Signal line and reached positive territory. The histograms have remained green for the past few days, which could be a bullish signal.
Can NEAR Price Record a New ATH?
Boj (@CryptoBoj) has tweeted that the Near Protocol price has the potential to extend to the $20 mark. The price was forming an inverted head and shoulder pattern in a 4-H time frame.
A breakout from a descending triangle pattern may result in a bullish trend. NEAR was at the major support level and has gained bullish momentum which can lift the price to the $20 mark.
The $10 Mark is Not That Far
The NEAR price has shown a bullish breakout and positive performance over the past few weeks. Considering the recent bullish breakout, the digital asset has the potential to continue its upward momentum toward the $10 mark by October. The technical indicators, such as the bullish divergence in RSI and the MACD crossover, suggest a favorable outlook for buyers.
If the price fails to maintain its strength and falls below key support levels, it could invite selling pressure and lead to a significant downturn. Therefore, while the potential for reaching the $10 mark is evident, it’s essential to remain cautious and monitor the market closely for any shifts in momentum.
