- Near Protocol price has breached a trendline, signaling a bearish breakout.
- Investors can expect NEAR to crash 18% and tag the midpoint of the 121% rally at $3.35.
- A four-hour candlestick close above $4.62 will invalidate the bearish thesis.
Near Protocol (NEAR) price shows clear signs of bullish failure as the altcoin produces lower lows and fractures an important uptrend support line. NEAR holders can expect a quick double-digit pullback soon.
Read more: Bitcoin ETF news and five most asked questions regarding spot ETF approval
Near Protocol price on the verge of a crash
Near Protocol price rallied 121% between December 18 and 25, setting up a local top at $4.62. Since then, NEAR has shed 11% and currently trades at $4.09. This down move has shattered the trendline connecting the five lower highs NEAR produced during its rally, confirming the start of a trend reversal.
The Relative Strength Index (RSI) currently sits at the midpoint of 50, and Awesome Oscillator (AO) is also sliding toward its mean level of 0. A breakdown from both these key levels will confirm the start of a downtrend.
Such a development could see Near Protocol price at least revert to the mean of $3.35. This move would see NEAR shed another 18% from the current level. Beyond this level, the altcoin could slide to the low volume node of $3.05, bringing the total drop to 25%.
In a highly bearish case, Near Protocol price could slide up to the 70.5% retracement level of $2.83.
Also read: MicroStrategy buys $615 million worth of Bitcoin; total holdings exceed Litecoin, SHIB market cap
NEAR/USDT 4-hour chart
While the pessimistic outlook for Near Protocol price makes logical sense, alts are booming due to Bitcoin’s rangebound movement. If this trend continues or if BTC spikes higher, it will reinforce the bullish idea and propel altcoins higher.
In such a case, if Near Protocol price produces a four-hour candlestick close above $4.62, it will create a higher high and invalidate the bearish outlook. This development could see the NEAR token rally 8.1% and tag the $5.00 psychological level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto analyst says Bitcoin bottom is very close, another correction in BTC likely
Bitcoin is trading above $67,000 on Sunday after securing support at $65,000. While BTC holds its gains steady, analysts evaluate the price trend of the largest asset by market capitalization and predict a deeper correction in Bitcoin.
AI tokens could really ahead of Nvidia earnings
Amidst other narratives, AI tokens could gather momentum with the upcoming earnings result of NVIDIA next week. The $2.3 trillion company’s stock emerged as a poster child for the crypto AI sector and gains in the stock catalyzed a rally in cryptocurrency tokens.
Whale rotates capital from WIF to TREMP and BONK, Solana meme coins make comeback
Lookonchain identified a large wallet investor who rotated capital from Solana based meme coin Dogwifhat to Doland Tremp and Bonk. The two meme coins have added double-digit value to their prices in the past 24 hours, as seen on CoinGecko.
Crypto political donations surge to $94 million pre election, exceed previous elections by 13%
Crypto industry giants supported political campaigns in the US looking for pro-crypto governance in the US. A Bloomberg report from May 17 shows that crypto donors have spent $94 million in an effort to get pro-crypto regulation in the US.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.