NEAR Protocol has experienced a significant price surge, appreciating by 6.36% in the past 24 hours. At the time of writing, the token is trading at $5.217, pushing its market cap to $5.79 billion. With daily trading volumes reaching $890 million, NEAR is drawing attention from both traders and investors.
This rally comes on the back of a partnership between leading AI chipmaker Nvidia and Alibaba, which sparked a positive reaction across AI-linked tokens, including NEAR. The recent partnership has fueled optimism around the broader tech and blockchain sectors, leading to increased bullish momentum in NEAR’s market.
Technical Analysis – Overbought But Bullish
NEAR’s upward momentum has driven it above the upper Bollinger Band, which currently sits at $5.072. The Bollinger Bands are commonly used to identify price volatility, and NEAR’s position above the upper band suggests an overbought condition. This typically signals that the token could be ripe for a short-term correction.
Supporting this overbought signal is the Commodity Channel Index (CCI), which surged to 224.85 following the rally. A CCI reading above 100 is considered overbought, indicating that while bullish momentum is strong, a potential pullback could be imminent.
Despite these indicators of overbought conditions, NEAR remains resilient. After a brief dip this morning, the token retested the upper Bollinger Band and held its value above it, suggesting that bulls are firmly in control for the time being. This indicates strong buying pressure and reinforces the possibility of further gains if the momentum continues.
Key Resistance and Support Levels
NEAR is now facing critical resistance levels at $5.469 and $6.301. The $6 psychological level has become a major target for bulls, but it’s important to note that the last time NEAR approached this level, it faced stiff resistance at $5.9. This resulted in a 10-day losing streak, underscoring the importance of breaking past $5.469 before targeting $6.
For NEAR to maintain its bullish momentum and break through the $6 barrier, it will need to consolidate above $5.469. If the bulls fail to do so, NEAR could retrace to its Pivot level support at $4.954 or further down to $4.121. Traders should watch these levels closely as they will likely dictate NEAR’s price direction in the coming days.
Outlook: Bulls in Control, But Caution Advised
While NEAR’s recent surge has positioned it as one of the top-performing tokens in the market, the overbought conditions highlighted by both the Bollinger Bands and CCI suggest that caution is warranted. High readings in these indicators often precede corrections, and traders should be prepared for potential short-term volatility.
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However, as long as NEAR holds above the critical support levels, there is room for further upside, especially if buying pressure continues to build. The token’s strong performance in the wake of the Nvidia-Alibaba partnership could provide additional momentum, propelling it toward the coveted $6 mark.
In conclusion, NEAR is at a crucial juncture, with bullish momentum on its side but facing key resistance levels. Investors should remain vigilant as the market navigates these resistance and support zones, with the outcome likely to set the stage for NEAR’s next major move.
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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