NEAR Protocol (NEAR) has been rejected by a key resistance level. The price may retest the yearly low at $1.24.
NEAR rejected
NEAR Protocol (NEAR) price has been below the 20-week EMA ($2.4) since May 2022. This line has rejected the price multiple times, leading to a low of $1.24.
The price has since rebounded from the low, but continues to be rejected by this line throughout February 2023. This is a bearish signal because the 20-week EMA is often used to determine long-term trends.
Therefore, the trend remains bearish and a drop to the yearly low is expected.
The RSI indicator supports this outlook as it continues to decline and is below 50.
However, a breakout above the 20-week EMA could bring it to the next resistance level at $3.8.
Short-term outlook
After a strong recovery since the beginning of the year, NEAR price has been trading within the range of $2.1-$2.7. Consolidation within a range often leads to a continuation of the trend. However, the price broke below the range on March 3, confirming strong selling pressure at higher levels.
This move caused the price to drop to the previous resistance level at $1.7 before bouncing back. It is currently confirming this range’s support becomes resistance. If the price continues to be rejected, it may retest $1.7 once again.
However, reclaiming the range could help the price quickly rise to the resistance at $2.7.
The RSI indicator is currently moving around 50, suggesting continued sideways movement in the short term.
Conclusion
Overall, the long-term trend for NEAR remains bearish and the most likely outlook is for the price to drop to the yearly low once again.
This view will be invalidated if the price breaks out above the 20-week EMA.
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This article was republished from azcoinnews.com