Technical Analysis of NEAR/USDT
Technical Overview
Time Frame: 4-hour interval.
Current Price: 5.869, trading above the 200-period MA (4.674), signaling that the overall trend has shifted bullish in the medium term.
Key Pattern: A breakout above a descending trendline (visible in the second chart) indicates a reversal from a prior downtrend, with the price now targeting higher resistance levels.
Key Observations
Trend Analysis:
The price has broken out of the descending trendline, indicating a reversal to an uptrend after months of bearish pressure.
The 200-MA is now sloping upward, confirming the bullish momentum.
Support and Resistance:
Immediate Support: The breakout point near 5.500 acts as strong support. If the price retraces, this level will likely see significant buying interest.
Immediate Resistance: The current resistance lies near 6.500, as highlighted in the second chart. This level has previously acted as a strong rejection zone.
Momentum Indicators:
RSI (Relative Strength Index): At 52.58, the RSI indicates neutral to slightly bullish momentum. There is room for the price to continue higher before entering overbought territory (above 70).
MACD Histogram: The MACD shows bullish momentum, with the histogram printing positive values, reinforcing the continuation of the uptrend.
Volume:
Volume has increased significantly during the breakout phase, confirming the validity of the trend reversal. Sustained volume will be crucial for further upward movement.
Scenario Analysis
Bullish Scenario:
If the price holds above 5.500 and continues its uptrend, it could target the 6.500 resistance. A breakout above this level could open the path toward higher targets around 7.000 - 7.500.
Sustained volume and a rising RSI will be critical to maintaining the bullish momentum.
Bearish Scenario:
If the price fails to hold above 5.500, it could retrace toward the 200-MA (4.674). A breakdown below this moving average would invalidate the bullish outlook.
A falling RSI and a bearish MACD crossover would confirm increased selling pressure.
Conclusion
NEAR/USDT is in a bullish trend after breaking out of a long-term descending trendline. Traders should monitor:
The 5.500 support zone for stability and a potential continuation upward.
Resistance at 6.500, which will determine whether the uptrend accelerates.