Key Takeaways
Some days back, the Near Protocol (NEAR) price showed that it was in line to fall toward $1. But after a series of positive market developments, that did not happen.
Instead, NEAR’s price increased by 7% to trade at $2. However, despite this rebound, sentiment around the altcoin is not entirely bullish.
In this analysis, CCN reveals why this perception is like that and what lies ahead for NEAR’s price.
NEAR Recovers Slightly
On a year-to-date (YTD) basis, NEAR’s price has fallen by over 60%, sliding below $1.90 in the process. But as of this writing, the cryptocurrency’s market value has risen above $2.
Yet, several indicators reveal that the recent rebound might struggle to last. A look at the NEAR/USD daily technical setup shows that the cryptocurrency’s value has been trading within a descending channel.
This position indicates that NEAR’s price action is bearish even though it is attempting to rise above the channel’s upper trendline. However, a thorough examination of the Moving Average Convergence Divergence (MACD) shows a negative reading.
The negative reading of the MACD indicates bearish momentum. Furthermore, the 12-day Exponential Moving Average (EMA) in blue has crossed below the 26 EMA (orange), validating the lack of bullish momentum.
If this trend continues, NEAR’s price might find it challenging to hold onto the $2 mark.
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Sentiment Bearish, but Analyst Expects Reversal Soon
From an on-chain perspective, the Weighted Sentiment reading remains negative. This rating indicates that most comments related to cryptocurrency are pessimistic.
If this remains the same, demand for NEAR might continue to fade, which could cause the altcoin’s price to decline.
Meanwhile, some analysts believe that NEAR’s price could be in line for a strong reversal. One of these with such sentiment is LLuciano_BTC.
However, the analyst noted that a shift to bullish sentiment needs to be shifted to validate the upswing.
“NEAR is showing decent support at this level, a strong reversal is imminent IMO. With some positive shifts in market sentiment, we could see a rise to $5+ in the coming months,” LLuciano_BTC stated .
NEAR Price Analysis: No Way Out Yet
For now, the Bull Bear Power (BBP) shows that the bulls are not in control. The daily chart shows that the BBP reading has dropped to the negative zone, indicating that bears might continue enforcing selling pressure.
Likewise, the red line of the Supertrend indicator is above NEAR’s price. This position indicates resistance, which could be close to $2.72.
Thus, if NEAR tries to break past $2.72, it might experience a push, which could cause it to drop to $1.80.
In a highly bearish case, the altcoin’s value might slide below the $1.50 mark. On the other hand, if bulls apply pressure, this trend might change.
In that scenario, NEAR could rebound to $.3.32 and hit the highest since March 2.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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