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A U-shaped recovery from the $3 support provides another retest to the descending trendline of a falling channel pattern. Furthermore, the coin chart displaying a higher price rejection candle at this resistance suggests a reversal possibility. How far will the channel pattern carry the NEAR price?
Key points:
- The NEAR chart shows long-tail rejection at descending trendline resistance.
- The daily-RSI slope shows a sharp recovery
- The intraday trading volume in the NEAR is $517.3 Million, indicating a 77.5% gain.
Source- Tradingview
Over the past six weeks, the NEAR/USDT pair has been lowering within a falling channel pattern. Furthermore, the recent recovery cycle was initiated when the altcoin bounced back from the combined support of the descending trendline and $3.
The U-shaped recovery surged the NEAR price by 34.5% and hit the overhead trendline. Moreover, the multiple requests to the pattern’s upper and lower bands indicate the trades are actively responding to its levels.
If the NEAR price reverts from the resistance trendline, the trades can expect the continuation of the downward spiral and even threaten to break the $3 psychological level.
However, the falling channel pattern is a bullish reversal pattern, which should eventually kickstart a recovery rally if buyers breach the overhead descending trendline.
This bullish breakout should provide traders with the first sign of recovery, and as per the technical setup, it could drive the altcoin above the $4.7 or $6.3 mark.
Technical indicator
The fast-moving 20-day EMA walks in confluence with the resistance trendline strengthening the resistance power of this resistance. The bearish alignment among the crucial resistance indicates an overall downtrend.
While the NEAR price is lowering within the channel pattern, the daily-RSI slope is rising, indicating that buyers are wrestling sellers for trend control. This divergence suggests the altcoin should eventually give a bullish breakout from this pattern.
- Resistance levels- $6.3 and $7.4
- Support levels- $3.88 and $3
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