Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
NEAR’s devaluation over the past 10 weeks has pushed the alt to newer multi-month lows on the chart. Since then, the bears have kept the alt below the constraints of the 20 EMA (red).
With a possible backlash from the Point of Control (POC), an ongoing uptick could test the falling wedge’s top trendline (white). At the time of writing, NEAR was trading at $3,452, up 6.76% in the last 24 hours.
NEAR daily chart
Since losing the $15 mark, sellers have put down a consistent run of bearish engulfed candlesticks over the past two months.
NEAR lost more than 83% of its value as of April 20 and plunged to a 10-month low on June 18. The boundaries of the falling wedge have led NEAR into the POC zone in a squeeze phase.
With the 20 EMA and the 50 EMA (cyan) still pointing south, the sellers clearly showed their lead. However, the gap between these two lines had become too great. A possible rebound could happen in the coming sessions, provided the buyers can ramp up the volumes.
A convincing close beyond the POC would help NEAR test the wedge’s upper trendline near the $3.8 zone. A robust break above the pattern could help buyers test the $4.2-$4.8 range. However, a likely reversal of the upper trendline could extend the tight phase near the POC level.
The bearish Relative Strength Index (RSI) saw slight growth out of oversold territory. Any breach above the 34 level would open doors for further recovery. Also, the recent higher dips on the index have diverged bullishly with the price action.
Similarly, the CMF saw a slight rise as it confirmed a bullish divergence at its lows. However, the MACD lines have yet to confirm a bullish edge while still oscillating below zero.
Given the bullish divergence on the RSI and CMF, NEAR would aim to test the firmness of the wedge’s upper trendline in the $3.8 zone. Any close above the pattern would help buyers test the 20 EMA before a likely reversal occurs.
Finally, investors/traders need to keep a close eye on Bitcoin’s movement affecting market dynamics in order to make a profitable move.
This post Unraveling the implications of still HODLing NEAR
was published first on https://ambcrypto.com/unraveling-the-implications-of-still-hodling-near/