Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
NEAR Protocol’s price action has formed a range for the past week and at the time of writing it had found some demand in the $10.5 area. Bitcoin also approached some resistance near the USD 39k area. A move higher for Bitcoin could likely take NEAR past the range highs as well. The purchase volume is stable, but not yet significant enough to reverse the previous trend.
The $9.8 and $11.87 are respectively support and resistance levels that have been significant several times in the past. At the time of writing, the price has been trading in a range between $10.05 and $11.77 for the past few days. It can also be seen that the mid-range has been respected by the price. It represents the 50% in-range level, another significant level (in the short term).
When the price recently broke above the highs, there was a bearish divergence between price and momentum. A previous supply area has now flipped to demand (cyan box).
Therefore, the lows and lows in the range and the midpoint are the levels to watch out for NEAR. A move above or below the midpoint can reverse the in-range bias, while a range breakout will trigger another bias for the next few days.
It should be noted that even the $12.5 area has been swept lately in search of liquidity, so a bullish break out of the range doesn’t necessarily turn into an upward move, but could just turn out to be a fall.
The RSI divergence at the range highs has already been mentioned. When trading within a range, the RSI regularly hacks into the neutral 50 level, although this level is sometimes respected as support or resistance. The RSI highlighted how a prevailing trend has not been established.
The CDV also emphasized the same thing: the buying and selling volume was more or less equal within the range, so a break next to a significant volume could turn out to be the start of a big move.
The Aroon Oscillator showed periods of up and down trends within the range, but again no dominant trend. The Supertrend’s sell signal was converted into a buy signal.
The $10.05, $10.92 and $11.77 levels were the ones to watch for in the coming hours or days for NEAR as they represent the lows, mids and highs of the range.
This post NEAR sign sails on windless waters after establishing this range
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