NEAR price Ready To Shoot With Cup And Handle Pattern

The Near Protocol (NEAR) chart shows a cup and handle pattern in action, with the recent bullish reversal from the 0.786 Fibonacci level. Moreover, the increasing buying pressure and the improving sentiments increase the breakout possibility. Thus, can the buyer defend this level again, or will we revisit the $3 mark? But should you wait for the breakout or grab the opportunity at cheaper levels?

Key points:

• The NEAR price rises from the 0.768 Fibonacci retracement level
• A breakout rally from $6.15 will test the sellers at $7.4.
• The intraday trading volume in the NEAR is $635 Million, indicating a 113% gain.

Source- Tradingview

The bullish reversal in the NEAR prices from $3 in late July failed to handle the increased selling pressure at the $6.15 supply zone resulting in a bearish retracement. The reversal to $3.70 sabotaged the bullish rounding pattern and accounted for a 38.2% fall. 

The bearish phase, however, failed to cross the $3.70 support level as buyers cushioned the falling trend leading to a lateral shift in trend. And after a few days of consolidation below $4.71 and the 50-day EMA, buyers overtook the trend control to give a bullish breakout. 

The reviving bullish momentum from the 0.786 Fibonacci level at $3.70 inchoates a cup and handle with a neckline at the $6.15 supply zone. However, the rising prices must achieve the overhead resistance to complete the bullish pattern. 

Currently, the daily candle shows increased bullish influence with a growth of 6.19% with long-wick formation, reflecting lower price rejection. Furthermore, the rising trend in the teasing volume accentuating the bullish trend increases the possibility of a bullish pattern breakout.   

If the daily candle closes above the $6.15 supply zone, the NEAR prices will rise to the overhead resistance of $7.40 by exceeding the 200-day EMA. 

Conversely, a reversal from the psychological mark of $6 will likely drop the prices back to the 0.786 Fibonacci level at $3.70. 

Technical indicator

Relative strength index: the daily-RSI slope spikes above the halfway line and approaches the overbought zone, influencing a bullish growth in the 14-day SMA.

DMI indicator: the bullish gap between the DI lines increases with growth in trend momentum evident by rising ADX line. 

Hence, the technical indicators reflect growing bullish sentiments, which may shortly propel the NEAR market value above the $6.15 supply zone. 

NEAR Price Intraday Levels

• Spot rate: $5.15
• Trend: Bullish
• Volatility: High
• Resistance levels- $5.5 and $6.2
• Support levels- $4.7 and $3.74