NEAR Protocol has been experiencing strong bullish momentum over the past two weeks, with its price increasing by over 50%. Despite facing resistance at a key price level, the altcoin remains well-positioned for further gains.
Therefore, it is ideal to keep a close eye on NEAR as it approaches a possible breakout that could result in a 45% rally.
NEAR is approaching a key price region
The recent price drop has not dampened investor sentiment around NEAR Protocol. The funding rate remains positive, indicating that traders are still optimistic about the asset’s future price movement. Thus, this optimism suggests that investors are anticipating a further price rally.
In short, the positive funding rate shows that long positions are more dominant, a bullish sign for the market. As long as the funding rate remains favorable, NEAR traders will likely continue to support the price, creating a solid foundation for the cryptocurrency’s next potential rally.
Read More: What is NEAR Protocol (NEAR)? – A Beginner’s Guide
NEAR Funding Rate. Source: Coinglass
NEAR’s macro momentum also remains strong, supported by key technical indicators. One such indicator is the Chaikin Money Flow (CMF), which measures capital inflows and outflows into the asset. Since early August, the CMF has been in an upward trend, suggesting increasing buying pressure.
Currently, the CMF is above the neutral line, indicating strong inflows into NEAR. Therefore, this upward momentum is a strong indicator that the uptrend may persist, thus helping the cryptocurrency overcome critical resistance levels and boost its upward trajectory.
CMF NEAR. Fonte: TradingView
Price forecast
NEAR is currently trading at $5.31 after an unsuccessful attempt to break through key resistance at $5.74. This level has served as both a resistance and support floor in the past, making it a significant price point for NEAR. Successfully breaking through this resistance could set the stage for an even higher rally.
Technical analysis suggests that if NEAR manages to overcome this hurdle, the altcoin could follow the trajectory indicated by its double bottom pattern. This pattern indicates a 45% upside, which would put NEAR’s price target at $7.47.
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NEAR Price Analysis. Source: TradingView
For this rally to materialize, NEAR will also need to flip $6.37 into a strong support level. Failure to do so could result in the cryptocurrency consolidating above $5.13, effectively invalidating the current bullish outlook and delaying any upward movement.
The article Could NEAR Protocol Skyrocket 45% in October? – Analysis Responds appeared first on BeInCrypto Brasil.
