After weeks of consolidation, Near Protocol's price appears to be on the rise again, surpassing the $2 mark and sparking investor interest. Is this increase the start of a new cycle or just a short-term technical rebound?
The NEAR price is currently trading just above the psychological threshold of $2. This is a historical support zone where the crypto consolidated in December 2023 before embarking on a rally that took it to $4.6. It appears that the bulls are defending the $1.90 to $2 support zone. In fact, when the price briefly dipped below during intraday declines on April 8, 9, and 10, the bulls stepped in to push it back up, allowing for a close above $1.90.
The NEAR price action is also getting closer to the 20-day Exponential Moving Average (EMA) at $2.24. NEAR had tried to reclaim this level at the end of March and has been trading in a narrow range around it since.
The MACD histogram is almost flat, and although the MACD line remains below the signal line, the gap has significantly narrowed. This often precedes a bullish crossover, which could serve as confirmation of momentum for the bulls in the short term. This would be especially true if the price manages to break above the 20-day EMA.
The %K line of the Stochastic indicator has also crossed above the %D line while both were in the oversold zone. This is a classic signal of an early bullish reversal. If this bullish crossover holds and the oscillator continues to rise above the 30 level – especially if accompanied by a breakout above the 20-day EMA – it would further validate a positive shift in momentum.
For the NEAR bulls to regain control, the first step would be to break and sustain above the 20-day EMA (around $2.24). If this happens with a increase in volume, it would pave the way for a retest of the resistance zone from $2.60 to $2.80. This area aligns with the 50-day Simple Moving Average (SMA) at $2.59.
In the longer term, if $2.80 is reclaimed and held as support, crypto analyst @NDKrypto believes it will signal that the NEAR price has bottomed out.
However, if we confirm $2.80 as support beforehand, it could turn out that we have already seen the bottom. So for NEAR investors, the key will be to closely watch the breakout and sustain above the 20-day EMA at $2.24. If this happens, it could pave the way for a return to the resistance levels from $2.60 to $2.80, which could confirm the bottom.
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