NEAR Protocol [NEAR] has demonstrated remarkable weekly gains, achieving a 34.5% increase, including a 12% surge within the past 24 hours, as per the latest data from CoinMarketCap.
Despite a recent deceleration in momentum, analysts predict that this slowdown is temporary, and an uptrend is imminent.
Potential Rise to $6.4 in NEAR’s Rally Momentum
The recent upward movement in NEAR’s price can be attributed to its rebound from a significant resistance level that has now turned into support at $4.366, driving its growth.
Even though encountering a new challenge with a resistance barrier at $5.256—a level marked by relatively low selling pressure—NEAR is currently within a symmetrical triangle pattern overall.
Based on historical data, this pattern suggests that NEAR could climb to as high as $6.489. At this peak, there might be significant profit-taking, leading to a price dip or potentially increased liquidity that could further boost NEAR’s value to $7.6.
To evaluate whether the $5.256 resistance level is truly minor, analysts have conducted a thorough examination of the latest technical charts.
Technical Signals Indicate Potential Volatility for NEAR
The Relative Strength Index (RSI), which gauges the speed and size of price movements, reflects a strong bullish sentiment for NEAR, currently standing at 68.5.
Although an RSI above 70 typically signals an overbought market, hinting at a possible pullback in the near future, the current RSI level for NEAR suggests ongoing accumulation and a sustained upward trend in the days ahead.
Conversely, the Bollinger Bands (BB) have risen above the upper limit, indicating that the price is presently in the overbought territory. This aligns with NEAR surpassing the resistance line, a sign that often precedes a price correction.
While these indicators hint at a potential short-term decline, there is still room for NEAR to climb higher before any downward adjustment occurs. The outcome remains uncertain.
Overall, the technical analysis points towards a probable breach of the resistance level at $5.256, further confirming the bullish trend.
Continued Rally in NEAR Supported by Open Interest
An examination of Open Interest (OI) by analysts suggests that NEAR is well-positioned for a continued rally, with expectations of reaching higher price levels.
Stats from Coinglass indicate an 18% surge in NEAR’s open interest, jumping from a previous low of $188.54 million to $266.84 million. This increase reflects the strength of market participation and bullish sentiment.
If this upward trend in open interest persists, NEAR’s trajectory is likely to rise even higher.