The price of Near Protocol (NEAR) may drop to the 20-day EMA ($5.48), which is an important support level to watch. If the price strongly rebounds from the 20-day EMA, the bulls will try to push the NEAR/USDT pair up to $8.58 and then to $9.01.
Daily NEAR/USDT chart | Source: TradingView
Conversely, if the price breaks and closes below the 20-day EMA, this may indicate that the breakout above $6.50 was just a 'bull trap.' At that point, the currency pair could plummet to the 50-day SMA ($4.86), prolonging the trading range from $3.42 to $6.50 for some more time.
4-hour NEAR/USDT chart | Source: TradingView
On the 4-hour chart, the price has rebounded from the moving averages, indicating that the bulls continue to take buying opportunities when the price drops. If the price exceeds $6.50, the bulls will attempt to initiate the next upward phase by overcoming the barrier at $6.80.
Conversely, if the price reverses and drops from $6.50 or $6.80, it indicates that the bears are taking advantage of the recoveries to take profits. This increases the risk of the price breaking below the moving averages. At that point, the currency pair could drop sharply to the rising trend line and then to the $5 level.
