Since the January spikes, bears had taken control until NEAR plunged to its $7.6 base. Since then, the alt has been on a gradual but consistent recovery.
Now a close below the rising channel (yellow) would position NEAR for a test of the $15 zone. After this, the bulls would reveal their intentions over the next few days. A drop below that level could find a cushion near its 50 EMA (cyan) before buying bounces back. At the time of writing, NEAR was trading at $16,055, down 5.34% in the past 24 hours.
NEAR 4-Hour Chart
Since its ATH, NEAR has lost more than 64% of its value and plunged to its 11-week low on Feb. 24. It lost its crucial price points because the bears were at the wheel.
NEAR held onto its trendline support as it fell towards the long-term support of $7.6. Consequently, it bounced back to witness five-week trendline support (white, dashed). As a result, the alt swung above its 20/50/200 EMA (red) during the ascent.
From here, any close below the current channel could push the price towards $15. If sellers continue their spree, a retest of the 50 EMA (cyan) could be conceivable before a possible bullish comeback. In addition, the price was near the upper band of the Bollinger Bands (BB) and is now approaching its average. This average can be an important area of value for the investors/traders.
The RSI has gradually declined since returning from overbought territory. The past day saw lower declines as price marked higher highs. This trajectory pointed to a possible hidden bullish divergence on the 4-hour chart.
Unfortunately, the CMF dipped below the zero line, confirming a preference for the sellers. But it matched RSI and confirmed a hidden bullish divergence.
A convincing close under the current pattern could lead to a 20 EMA retest before the bulls make a comeback. If the buyers intervene, near the $15 mark, it would confirm these hidden differences and keep hopes of a rebound out of the $14-$15 zone. Moreover, the investors/traders need to keep a close eye on the movement of Bitcoin affecting the market structure in order to make a profitable move.
This post How could this divergence affect NEAR’s short-term price action?
was published first on https://ambcrypto.com/how-this-divergence-could-affect-nears-short-term-price-action/