Near Protocol (NEAR) has spiked by nearly 20% over the last three days, sparking speculation about a sustained rally. However, a look at the price action indicates that the overall sentiment remains bearish.
Recent NEAR Price Surge
NEAR has been confined to a descending channel since May, limiting its price movement to a downtrend. If this trend continues, we could see NEAR drop by more than 30%.
Possibility of Breaking the Descending Channel
For a significant upward move, NEAR needs to break out from the top of the descending channel, which has acted as resistance for the past five months. A breakthrough here could bring in bullish pressure.
Technical Indicators
The Relative Strength Index (RSI) is at 57, suggesting there's room for further price growth if bullish momentum increases. The 50-day Simple Moving Average (SMA) serves as support, while the medium-term 100-day SMA is positioned above the price at strong resistance.
Despite recent gains, NEAR's price remains within a descending channel. Breaking the 5-month resistance could unlock further potential for growth, but indicators are currently mixed.
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