On Wednesday, the Near Protocol(NEAR) buyers made a flashy recovery against last week’s correction rally. The coin price rebounded from the $9.5 support, showing a 16% long bullish candle. The price action is now forming the right shoulder of the inverted H&S pattern, nearing a bullish breakout from its $11.76 neckline.
Key points:
- The NEAR chart shows a morning star candle at $9.5 support
- The intraday trading volume in the NEAR is $4.9 Billion, indicating a 27% fall.
Source- Tradingview
On March 2nd, the NEAR price turned down from the $11.7 resistance and initiated a minor retracement. As a result, the altcoin tumbled by 18.3% and plunged to a prior resistance level of $9.5. However, the declining volume activity during the pullback showed the traders were less interested in selling this coin.
The lower price rejection on march 7th suggested the $9.5 level has flipped into support. Today, the coin price bounced back from this support with a morning star candle, displaying a massive spike in volume.
The technical chart shows an inverted H&S pattern in the daily time frame chart. The recent jump has driven the coin price by 16.5%, charging $77.5 resistance steadily. A breakout and closing above the shared resistance of $77.5 and 100-day SMA would complete the bullish pattern, suggesting another 18.6% rally.
In contrast to the bullish thesis, if sellers sustain the coin price below the $11.7 mark, the selling pressure would gradually rise and dump it to $9.5 support, followed by $8.3.
The MACD indicator shows the fast and slow approaching the neutral zone from below. A crossover from this midline would accentuate the increasing bullish momentum.
The flattish 100 and 200-day MA support a sideways rally in price action. Furthermore, the 100 MA slope stands as the last line of defense for bears, and crossing above this resistance would offer an extra edge for long traders.
Resistance levels- $11.7 and $16
- Support levels- $9.57 and $9.3
