NEAR Successfully Defends $1.6 Low...Must Break $1.8 for Rebound

▲ Near Protocol (NEAR)/AI generated image

Near Protocol (NEAR) has halted its decline near $1.60, but an analysis suggests that a trend reversal is unlikely until it reclaims key moving averages.

According to U.Today on August 6 (local time), NEAR has been forming a base near $1.60 after several weeks of decline from its summer highs. Recent buying pressure has defended the $1.60 support level, leading to a modest rebound, but the overall technical trend remains bearish.

The biggest hurdle is that the 20-day, 50-day, 100-day, and 200-day moving averages are all positioned above the price. As these major moving averages stack up as resistance levels, a structure has formed where selling pressure could enter with every attempt to rise. U.Today interpreted this as a sign that a consolidation phase is continuing rather than the beginning of a long-term recovery.

Another weakness is the lack of a significant increase in trading volume during the rebound. U.Today analyzed this as a sign that institutional investor participation remains low. Without strong buying pressure, the upward trend is likely to be curbed whenever it approaches a nearby resistance level.

The first hurdle for a bullish reversal is the 200-day moving average near $1.80. Subsequently, reclaiming the 50-day moving average could improve the technical trend. The next target is the 100-day moving average formed near $1.90. A short-term rebound can only lead to a trend reversal by reclaiming the major moving averages one by one.

The key support zone is between the recent lows of $1.60 and $1.62. If this zone is broken, the price could fall back to pre-May breakout levels, giving back a significant portion of the summer's gains. NEAR is slowing its decline, but there are no signs yet that buying pressure has regained control.

[Article Key Summary]

-NEAR has stopped its decline near $1.60 but remains below key moving averages.

-For a bullish reversal, it must reclaim the 200-day moving average near $1.80 and the resistance level near $1.90.

-If the $1.60 to $1.62 support zone breaks, it could fall back to pre-May breakout levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*