In the last month, Near Protocol [NEAR] has encountered difficulties, experiencing a significant 17.85% decline, affecting its weekly performance with a 4.83% decrease, signaling a lack of interest from the market.
Despite these obstacles, there is a growing sense of positivity. NEAR has seen a noteworthy 5.83% increase in the past 24 hours. The critical question now revolves around the sustainability of this momentum and its potential to shift market sentiment from negative to positive.
Rally Potential Hindered by Impending Challenges
NEAR has initiated a strong upward movement, rebounding from the ascending triangle support area and a horizontal support line at $4.087. This recovery has significantly impacted its daily gains and aligns with the overall bullish symmetrical triangle pattern.
However, NEAR’s rally is confronted by significant barriers at crucial resistance levels that could trigger a decline. The primary resistance is positioned at $4.524, followed by another obstacle at $5.005.
If NEAR manages to surpass these hurdles, it might enter a bullish phase, potentially aiming for $6.40, where profit-taking by traders is expected. Otherwise, it will likely continue trading within the confines of the symmetrical triangle pattern.
Market Uncertainty Prevails Among Participants
The envisioned rally for NEAR faces uncertainty as conflicting signals from technical indicators add to the market’s apprehension.
The Parabolic SAR (Stop and Reverse) serves as a trend-tracking tool that identifies price direction and potential reversal points. When SAR dots are below the price, it signals an upward trend; when above, it hints at a downturn.
Currently, NEAR’s SAR dots hover above the price, indicating a prevailing bearish sentiment that could impede upward momentum or drive the asset lower.
Conversely, the Relative Strength Index (RSI) has displayed a significant upsurge, trending higher with a current reading of 45.03. If this momentum endures and transitions into bullish territory, NEAR could witness further upside potential.
Given these conflicting signals, traders remain uncertain about NEAR’s next price direction.
Bullish Outlook on Open Interest
Coinglass reports that the Open Interest for NEAR reflects a bullish sentiment, indicating favorable market movements. Over the last 24 hours, it has surged by 5.19%, reaching a total value of $212.45 million.
This suggests a higher number of long positions being opened compared to short positions, which could positively impact price trends if this trend persists.