By Franklin Smith
Near Protocols has witnessed relatively stable trading volume over the last two weeks, despite the price gaining approximately 30% within that phase.
Does the absence of trading volume spikes indicate NEAR’s lack of demand? The daily chart shows the alternative token retained a substantial support level. Meanwhile, bulls might lose strength at these levels.
Near Protocol 1D Timeframe
NEAR’s long-term picture reveals the most substantial immediate zones stand at $6.5, $4.7, and then $3.6. The value area at $6.5 served as support during the May sessions, though the selling momentum was too high to withstand.
The late session of May saw the altcoin retesting this mark as resistance. Meanwhile, the upcoming weeks might have the value area of $6 – $6.5, offering massive hurdles for NEAR price. Also, $4.68 offered another crucial support.
This zone has remained substantial on the 24hr chart since June. Furthermore, bears ensured a robust defense of the level in July end. Though the altcoin noted a massive breakout past this territory, August initiated a brutal reversal. That saw the price dipping beyond this belt, dropping towards the demand area of $3.6.
The territory represented a bearish order block during July sessions before price actions overturned it to support. The rebound from $3.5 plus flipping $4.7 to a foothold ensured hope. NEAR has chances to move towards the $6 – $6.5 mark, and traders can use the opportunity to book profits.
Reasoning
The Relative Strength Index regained strength to push beyond the 50-neutral following August’s swift rejection. Nevertheless, buying pressure remained low despite the momentum exhibiting massive bullishness. The on-balance volume failed to print a new peak.
The OBV breaking beyond August’s high would confirm the presence of massive demand for Near Protocol. The CMF (Chaikin Money Flow) climbed beyond +0.05, indicating substantial capital flowing into the marketplace. The indicators confirmed some bullish strength and buying momentum, though not massive to warrant expectations of moves beyond $6.5.
Final Thought
The $4.68 mark remained crucial in lower charts, whereas $3.6 represented a vital zone for bulls in higher charts. NEAR can beat the bearish bastion around the $6.5 mark. Furthermore, buyers can book profits at this mark as it has shown significance for more than one year.
Editorial credit: Ira Lichi / shutterstock.com