NEAR price analysis indicates a corrective pullback is on the cards. However, that could be a good entry point for the bulls. As it provides an attractive bargain buying opportunity.
On the daily chart, the NEAR price forms a ‘Cup & Handle’ formation, which is a bullish pattern. A retest of the $4.70 horizontal support level and if it is sustained by the buyers. Then, we can expect the continuation of the upside momentum toward the $6.0 psychological level.
As of publication time, NEAR/USD is exchanging hands at $4.94, down 4.97% for the day. According to CoinMarketCap the 24-hour trading volume declined more than 43% to $396,454,450. A decline in volume along with price, is a weakening sell side momentum.
NEAR price looks for upside extension
The price gave a breakout of bullish “Cup & Handle Pattern” with more than average volumes, indicating a bullish sentiment on daily basis. According to this pattern, the expected upmove price can go up to $6.0.
The RSI (14) is trading above 65, indicating that the average gain is larger than the average loss, you can conclude that it’s in an uptrend if looking for a buy look for buying opportunities.
The nearest support the price can take is up to $4.57, whereas the nearest resistance the price can face is up to $5.25. There is a higher probability of the price breaking its resistance on higher levels.
Recently, the price gave a breakout from a level of $4.7, which was a strong resistance earlier, as it was not able to break that level since May 27.
On the four-hour time frame, a breakout of an inverted “Head & Shoulder Pattern” resulted in a single day move. As for now it is coming for a retest on the given breakout level. Thus, the recent NEAR price analysis indicates, that buying on the dips opportunity is the best option to play out within the near future.
On the other hand, a break below the $4.5 level could invalidate the bullish outlook. And the price can be below $4.1
NEAR is bullish on all time frames. Above $5.25 closing on the hourly time frame, we can put a trade on the buy side.