NEAR Protocol regained bullish momentum after breaking above the 50-day SMA ($4.71) on November 11, suggesting a short-term trend change.
NEAR/USDT Daily Chart | Source: TradingView
The NEAR/USDT pair has now hit a key resistance at $6.50, which is the level to watch in the short term. The rising 20-day EMA ($4.96) and the RSI in the overbought zone suggest that the path of least resistance is to the upside. If the bulls push the price above $6.50, the pair could rally to $7.70 and then $8.58.
Conversely, if the price reverses sharply from the current levels and breaks below the 20-day EMA, it will signal that the pair could fluctuate in a large range between $6.50 and $3.42 for some time.
NEAR/USDT 4-hour chart | Source: TradingView
The negative divergence on the RSI indicator suggests that the bullish momentum is slowing. If the price breaks and closes below the 20-day EMA, selling pressure could increase, pulling the price towards the 50 SMA and then the strong support at $5.
On the other hand, if the price reverses from the current level and breaks above $6.15, it will indicate that the bulls continue to buy on dips. The pair will then make another attempt to break above $6.50. If successful, the rally could reach $7 and then $7.70.