Can This 8% Reversal From $3.7 level Encourage NEAR Price recovery?

The Near Protocol (NEAR) price shows an 8% jump from $3.75, putting a break in the prevailing downtrend and increasing the chance of a trend reversal. However, higher price rejection in the daily candle limits the bullish possibility and warns of a price fall. So, which levels will be critical to determine the upcoming trend?  

Key points from NEAR analysis:

• The NEAR chart shows a V-top reversal from the $6 mark
• High wick rejection attached to daily candle shows supply pres
• The intraday trading volume in the NEAR is $691.5 Million, indicating a 49% gain.

Source- Tradingview

Over the past three weeks, the NEAR price plunged by 33.6.% after facing extreme supply inflow at the overhead resistance of $6. The correction phase breaks under $4.3 and tests the buyers at the crucial demand zone of $3.75. 

Additionally, The bearish trend at a breakneck speed found the support of increased trading volume and broke below the 20-day EMA. 

Currently, the NEAR token trades at $4 after an overnight bullish reversal from the aforementioned support but the higher price rejection in the daily candle warns of a price dump this week.

However, the token price must show sustainability above the flipped resistance of the $3.75 mark to increase the probability of a jump of 9.3% to $4.3. 

Conversely, a price dump below the bottom support of $3.75 will nullify the bullish thesis and lead to a price fall to $3. 

Technical indicator

DMI indicator: the bullish reversal in NEAR prices results in a reversal in the Di lines, increasing the crossover possibility. However, the falling ADX line reflects a weak trend momentum. 

MACD indicator: the declining trend in the bearish MACD histograms teases a bullish crossover in the fast and slow lines. Hence, the technical indicators suggest a possibility of a prolonged uptrend. 

EMAs: the downsloping and 20-and-100-day EMA indicate both long-term and short-term trends in bearish. Moreover, the 20-day EMA offers dynamic resistance to coin price 

• Resistance levels- $4.3 and $4.7
• Support levels- $3.7 and $3