NEAR protocol (NEAR) has been stuck in a steady downtrend for a while now. Sellers stayed in control for most of this week too. This, after each bullish attempt was neutralized by aggressive sellers during the previous crypto market shake-up.
The altcoin’s price action kept printing lower lows all along as the momentum clearly leaned in favour of market bears. However, it’s worth noting that the bearish momentum has been losing strength recently.
Aggressive buyers shows up at a key level
On the daily charts, NEAR’s $0.855 support zone was winked strongly as aggressive buyers stepped in fast to invest the dip. The daily candle closed strong with a long lower wick, indicating that a potential reversal could be on cards.
Over the last few weeks, sellers have been in control. However, upon retesting the $0.855 support zone, buyers absorbed the selling pressure aggressively. NEAR’s price action has gained some bullishness since then too.
Such a reaction is often indicative of short-term exhaustion from bears.
Momentum indicators flash early recovery signs
That is not all since momentum indicators may be starting to align too. The Stochastic RSI dropped deep into oversold territory – A sign that selling pressure could be nearing an end, while affirming the likelihood of a looming reversal ahead.
The Stochastic RSI does not guarantee a reversal, but it increases the odds of a relief move. Put simply, the altcoin’s price action and momentum may be aligning with the market’s bullish bias.
Volume and social metrics back the move
Narrowing down to the on-chain metrics, NEAR’s trading volume has also risen significantly during the bounce. Figures for the same recorded a hike of $97 million to hit $453 million at press time.
That matters since it is a sign of real participation across the board. Not a weak, low-liquidity move.
At the same time, NEAR’s social dominance has picked up too. More traders are talking about the token again.
From a similar scenario in the past, the alignment of positive momentum and spiking social dominance accelerated the altcoin’s bullish advancements. The same could come into play here and accelerate NEAR’s bullish momentum.
Levels and zones to look out for
The $0.855-zone is now critical. Bulls need to hold this level. A sustained defense could allow NEAR to push towards nearby resistance levels, probably to hunt the liquidity cluster worth 264k at around the $1.08-price level.
On the other hand, a failure for the support level to hold would reopen the door to a further bearish run.
At the time of writing, the balance seemed to be shifting. While the bears may be losing control, bulls are still only testing the waters.
The next few trading sessions will be key. Follow-through will decide whether this is a temporary bounce or the start of a broader trend shift.
Final Thoughts
- NEAR bounced strongly on the charts after testing the $0.855 demand zone.
- Oversold indicators and rising activity hinted at a possible trend shift.
