NEAR Protocol (NEAR) has recently demonstrated a remarkable resilience: against the backdrop of choppy Bitcoin prices and general market uncertainties.
NEAR has managed an impressive 50% rise in a month and a striking 236% surge over the past 90 days.
Currently, NEAR finds itself in a critical trading zone, oscillating between a significant support level at $3.05 and a notable resistance at $3.3.
The daily chart of NEAR Protocol shows a bullish flash that has developed over the last month. Since then, a beautiful support/resistance flip took place at the $3.0 psychological level, leading to more upside.
This upward continuation kicked off with a massive rally to areas above $14.5, after which suppliers booked profits and lower levels were able to be defined using the descending parallel channel.
The primary question currently is whether NEAR has finished its current correction. If that is the case, areas of interest for support flips are found above the channel.
NEAR price at a critical resistance level
The NEAR/USD daily chart shows that the price is trading at the upper boundary of the falling channel at $3.3. A daily candlestick close above this level would suggest the ability by the buyers to initiate a recovery.
Key levels to watch in the upside would be the $3.5 and $4.0 psychological levels. Higher than that NEAR could rise to tag the $4.6 range high or $5.0. This would bring the total gains to 50%.
NEAR/USD daily chart. Source: TradingView
Supporting the positive outlook for NEAR were the upward facing moving averages. Not that the token traded above these demand levels suggesting it sat on strong support downward.
The relative strength index (RSI) was also tipping upward. A suggestion that the buyers had begun returning to the scene.
On the downside, failure to rise above the channel would suggest that the downtrend is not over for NEAR. A daily candlestick close below the 50-day exponential moving average (EMA) at $3.05 would imply that a significant correction is on the table. The next areas for support are the 100-day EMA $2.5 and the 200-day EMA at $2.14, which is a correction of 23 and 36% respectively.