NEAR Price Analysis: Bullish Pattern May Shoot Recovery Rally to $5.6

The Near protocol (NEAR) price shows the formation of a double bottom pattern in the daily time frame chart. Today the altcoin has surged 11% and showcases a decisive breakout from the neckline resistance of $4.24. The expected retest should offer an entry opportunity to interest traders.

Key points: 

• The NEAR price rally reclaims 20 and 50 DMA
• The $4.2 breakdown would continue the price consolidation
• The intraday trading volume in the NEAR is $517.3 Million, indicating a 77.5% gain.

Source- Tradingview

From May 13th to July 6th, the NEAR/USDT technical showcased a steady downfall under the influence of a falling parallel channel pattern. Furthermore, the downfall witnessed intense demand pressure at the $3 mark and has prevented further falls since last month.

Moreover, On July 7th, altcoin gave a bullish breakout from the overhead resistance trendline offering an early sign of recovery. The post-breakout pullback retested the $3 mark and validated it as legitimate support. 

On July 13th, the NEAR price rebounded from the mentioned support and surged 38.81%, hitting its current price at $4.49. Moreover, the new recovery rally completes the formation of a double bottom pattern with a neckline breakout of $4.24.

However, the buyers need a daily candle closing about this breached resistance and with a significant volume spike to confirm a genuine breakout. If these criteria are met, the buyers will obtain a stable footing to extend the ongoing recovery. 

The potential rally should pierce the $4.7 resistance and sour 24.5% higher to hit the $5.6 resistance.

Technical indicator

OBV indicator: A sharp rise in OBV slope following a bullish divergence reflects the strong interest of traders towards bullish trade. This increases the chances of a sustained recovery rally.

Bollinger band indicator: the NEAR price breached the indicator’s upper band reflects a sudden buying in the market. Thus, the price may consolidate above the $4.2 mark for a few trading sessions to stabilize this buying pressure.

• Resistance levels- $4.8 and $5.6
• Support levels- $4.2 and $3.88