NEAR Protocol is looking bullish as it darts past the $4.7 support zone.
NEAR’s bullish momentum appears to wane
Price exhibits low trading volume
NEAR price trading at $4.51
However, judging by the price movement, it looks like the bull’s luck may be running out.
On the other hand, NEAR’s trading volume appears to be diminished or low even if the altcoin has amassed roughly 35% gains in that same period. So, does this mean a faltering demand for NEAR?
From a long-term perspective, NEAR’s resistance and support levels could be anywhere near the $3.7, $4.5, and $6.8 levels; respectively.
Originally, the $6.8 zone acted as a support zone in May however the selling pressure has been too overwhelming to control. This level was again retested late in May, but with no luck.
$6 Level Posing Hurdles To NEAR Price
In the coming weeks, it’s more likely that the $6 level would hoist some hurdle to the price. More so, the $4.7 area is another critical support level as this zone has been pivotal on the daily chart since June and July.
While breaching this zone was phenomenal for NEAR protocol, August was rather unkind with a reversal and a seismic price crash.
NEAR’s RSI has been pushed above the neutral 50 zones following a rejection experienced last month. Despite the bullish movement, buying pressure has weakened. More so, the OBV also remained sluggish with unfortunately no new highs formed.
Now, if the OBV can successfully breach and surpass its high registered in August, then this would validate the strong demand for NEAR Protocol. Additionally, the Chaikin Money Flow or CMF has also barreled past +0.05 revealing NEAR’s huge capital flow.
More Buying Activity Needed
Overall, technical indicators show some bullish movements and intense buying activity but may not be enough to validate a move that overshadows the $6.8 zone.
According to CoinMarketCap, the NEAR price has slumped by 9.05% or trading at $4.51 as of this writing. The current stats have been optimistic and are quite the opposite of NEAR’s remarkable performance over the past few days where the altcoin has registered an uptick of 9.5%.
Trading volume is seen to have increased by as much as 36% compared to its slow movement last week.
NEAR total market cap at $3.36 billion on the daily chart | Source: TradingView.com
Featured image from The Market Periodical, Chart: TradingView.com