NEAR’s Immediate Objective: Paving the Way for Altcoin to Attain $5.8
Despite the recent uptrend, NEAR’s price movement has been relatively subdued. It posted marginal gains of just 0.14% in the past 24 hours and a slight increase of 0.36% over a week-long period.
This phase, known as consolidation, suggests that traders might be accumulating NEAR in anticipation of a significant price shift. With this insight in mind, CryptoCrypto analyzed the potential upcoming moves for NEAR.
Crucial Role of Support Level in NEAR’s Expected Price Swings
Currently, NEAR is trading within a symmetrical triangle, a pattern characterized by converging support and resistance lines. This pattern implies a period of consolidation where buyers are steadily building their positions in the asset.
If this pattern breaks to the upside, NEAR could potentially surge towards the peak of $5.871 within the pattern. Nevertheless, prior to this upward movement, NEAR is likely to test the vital $4.604 support level, which is pivotal in determining the subsequent course of action.
If the $4.604 support fails to hold, NEAR could witness a further decline, dropping below the pattern’s support boundary to a local support level at $4.248.
Indicators Point to Active Buying Interest in NEAR
Both the Parabolic SAR (Stop and Reverse) and the Relative Strength Index (RSI) indicate that NEAR might be gearing up for an uptrend.
The Parabolic SAR, with dotted markers appearing below NEAR’s current price, signifies ongoing buying pressure and a bullish trend. If these markers continue to increase and surpass four consecutively, it would confirm NEAR’s sustained upward momentum.
While the RSI may seem to be trending downwards, it actually reflects a bullish tone. It is anticipated to test the supportive trend line that has been propelling its movement alongside NEAR’s price.
Despite this temporary dip in the RSI, it could trigger a price decline towards the $4.604 support level. Following this, a reversal is expected, setting NEAR back on track for its upward journey.
Strong Positive Outflows Indicate Favorable Conditions for NEAR
Recent data from Coinglass reveals substantial outflows of NEAR from exchanges.
Over the past week, NEAR witnessed net outflows totaling $1.62 million, underscoring a positive outlook as investors relocated their assets off exchanges. It’s important to note that such actions often signal an accumulation and long-term investment strategy.
If this trend of negative net outflows persists over an extended period, it will reinforce bullish sentiment and potentially lead to a forthcoming rally. Furthermore, it will validate the overall strength of NEAR’s ecosystem.