Is NEAR Protocol Poised to Break $7.50 Resistance and Target $9 in the Near Future?
NEAR Protocol [NEAR] has been demonstrating a strong bullish trend following its breakout from a prolonged descending channel.
At the time of writing, NEAR was priced at $6.28, with a trading volume of $1.18 billion over 24 hours and a market capitalization of $7.67 billion.
Despite a 9.03% decline in the last 24 hours, the cryptocurrency has surged by 6.69% in the past week.
Having encountered a small pullback after nearing the $7.00 resistance level, NEAR is currently consolidating, a common occurrence following a robust upward movement.
Supporting this uptrend are higher highs and higher lows, indicating potential for further price appreciation as it approaches the next critical resistance range.
Traders are closely watching the $7.50–$8.00 resistance zone as a breakout above this level could lead to a rally towards the $9.00 mark.
It is crucial for NEAR Protocol to maintain support levels at $6.00–$6.50 to sustain its bullish momentum in the short term.
Breakout Triggers Bullish Momentum
In late October, NEAR successfully broke out of a descending channel, putting an end to a period of lower highs and lower lows that had persisted since May 2023.
The breakout occurred around $5.00, which has now transformed into a critical support level for the cryptocurrency.
Following the breakout, NEAR witnessed a surge from $4.00 in early October to a recent peak near $7.00, surpassing resistance barriers at $5.50 and $6.00.
The price range between $6.00 and $6.50 is currently acting as immediate support for NEAR.
Primary resistance levels lie at $7.50–$8.00, with a potential target of $9.00 if the bullish momentum prevails.
Consolidation Precedes Potential Upward Movement
Technical indicators suggest that NEAR is in a consolidation phase. The Relative Strength Index (RSI) at 61.54 indicates a slight relaxation from previous overbought conditions, potentially setting the stage for another uptrend.
The MACD remains bullish, supported by a positive crossover, signaling that upward momentum is still strong.
Although trading volume dipped during the recent pullback, a recovery in volume could confirm the continuation of the uptrend as NEAR approaches its key resistance levels.
On-Chain Data Indicates Accumulation
Futures Open Interest for NEAR has declined by 12.97% to $393.88 million, reflecting a reduction in leveraged positions as traders secure profits or close trades.
Despite this decrease, the high Open Interest level indicates continued market participation, keeping NEAR in the spotlight for potential future movements.
Spot netflows reveal a $6.39 million outflow, indicating that tokens are being withdrawn from exchanges, often a sign of accumulation by long-term holders and decreased selling pressure, aligning with NEAR’s bullish trajectory.