NEAR Protocol (NEAR) is turning heads in the crypto market with an impressive 34.5% gain over the past week, including a sharp 12% increase in just the last 24 hours, according to CoinMarketCap. While recent price action has slowed, technical indicators suggest that this could be a temporary pause, with analysts forecasting another leg upward for NEAR.
NEAR’s Rally Targets $6.4 Amid Bullish Momentum
NEAR’s price rally stems from a crucial rebound off the $4.366 resistance-turned-support zone. This level acted as a springboard, propelling NEAR into a bullish trajectory. The cryptocurrency now faces a new challenge at $5.256, a minor resistance level that analysts believe won’t hold NEAR back for long.
Chart patterns indicate that NEAR is forming a symmetric triangle, a technical setup often associated with continued upward movement. Should this pattern hold, NEAR could be on track to reach $6.489—a significant target where profit-taking may trigger volatility. However, if liquidity remains strong, NEAR could push beyond, with some analysts even eyeing $7.6 as the next milestone.
Technical Indicators Signal Volatility and Continued Growth
The Relative Strength Index (RSI) for NEAR currently stands at 68.5, signaling strong bullish momentum. While an RSI above 70 usually indicates an overbought market—often a precursor to a pullback—NEAR’s current reading suggests ongoing accumulation, a positive sign for short-term growth.
In addition to the RSI, the Bollinger Bands (BB) show that NEAR has crossed into overbought territory. The cryptocurrency’s price has exceeded the upper threshold of the BB, a condition that often precedes a correction. While this may signal a brief cooldown, the possibility of NEAR breaking through its $5.256 resistance is still high, adding fuel to the bullish sentiment.
Further supporting the bullish outlook is a surge in NEAR’s open interest (OI). According to Coinglass, NEAR’s OI has jumped by 18%, from $188.54 million to $266.84 million. This increase in OI reflects growing market engagement and suggests that traders are betting on NEAR’s continued rally.
Historically, rising OI is a key indicator of sustained bullish sentiment. As long as OI continues to rise, NEAR’s trajectory remains upward, with price targets of $6.4 and beyond becoming more realistic.
What’s Next for NEAR Protocol?
Despite the current bullish indicators, caution is still warranted. While NEAR’s rally shows signs of strength, the cryptocurrency’s movement through key resistance levels like $5.256 will be critical in determining its next major price action. If NEAR successfully breaks through this resistance, it could set the stage for a climb toward $6.4, and possibly higher.
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In conclusion, NEAR Protocol is at a pivotal moment. While short-term volatility could see minor corrections, the overall technical outlook suggests that NEAR is poised for further gains. With growing open interest and strong bullish sentiment, NEAR may very well hit new highs in the coming weeks.
This rally could present a promising opportunity for investors, but as always, the volatile nature of cryptocurrency markets demands close attention.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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