A bullish breakout from the rounding bottom pattern signals a major shift in market sentiment for the NEAR protocol price.
STORY HIGHLIGHTS
The Near price breakout from the rounding bottom signals an early sign of reversal.
An overbought signal from the momentum indicator hints the NEAR price is poised for an occasional pullback.
The intraday trading volume in NEAR is $1.23 billion, indicating a 170% gain.
The crypto market initiated the new week with another leg up as the leading digital asset Bitcoin broke above the $70000 barrier to mark a new All-time High. The ripple also uplifted the altcoin for prolonged recovery including the Near Protocol coin. With a 17.24% intraday jump, the NEAR price breached the neckline resistance of the rounding bottom pattern paving the way for a further recovery rally.
Investor Confidence in NEAR Protocol Hits New Heights
NEAR Protocol (NEAR) is a decentralized application platform designed to provide high-speed transaction processing and low transaction fees. It stands out for its unique sharding technology, Nightshade, which aims to achieve scalability and usability without compromising security.
NEAR, the native cryptocurrency of this ecosystem has witnessed an aggressive rise since early February when the price rebounded from $2.68. The bullish upswing propelled altcoin 157% within five weeks to currently trade at $6.89.
According to Coinglass data, the open interest value for NEAR Protocol has seen a similar surge, jumping from $95.86 million to $296.5 million since February’s second week. This represents a growth of approximately 209.3%, signaling a significant boost in investor confidence and heightened interest in the cryptocurrency.
An analysis of the daily time frame chart shows the formation of a well-known bullish reversal pattern called the rounding bottom.
Key Resistance Breakout Foretells a Climb to $11.2
With a long bullish candle, the NEAR coin price provides a decisive breakout from the $6.12 neckline resistance of the rounding bottom pattern. This pattern is identified by a gradual decline in prices followed by a period of stabilization and a gradual increase, indicating a slow and steady shift in market control from sellers to buyers, leading to a bullish market outlook.
If the buyers manage to sustain this breakout the Near protocol price should chase the theoretical target of $11.2
BB Indicator: The sharp upswing in the Bollinger Band indicator accentuates the buyers are dominating this asset.
Average Direction Trend: The ADX slope at a high of 32% hints the crypto holders may witness occasional pullbacks and maintain a steady recovery trend.