NEAR Protocol (NEAR) Nearing $5, Hits Supply Wall... Entering a Breather?

▲ NEAR Protocol (NEAR)

NEAR Protocol (NEAR), which had been on a steep vertical ascent, hit its first major resistance level and entered a short-term consolidation phase.

According to crypto media outlet U.Today on September 23 (local time), NEAR Protocol began a relentless rally from the $2.30-$2.50 range, breaking through the $3 and $4 resistance levels in just a few days. After touching an intraday high of $4.66, it gave back some of its gains due to selling pressure, settling around $4.35. However, the overall technical price structure is still assessed as maintaining a strong bullish trend.

In terms of technical indicators, the mid-to-long-term uptrend is firmly maintained. On the chart, the shortest-term moving average has already surged to around $2.80, and all major moving averages are drawing upward curves in unison below the current price. It was also confirmed that the initial breakout phase was accompanied by massive trading volume, indicating substantial buying interest from real market participants rather than a temporary rebound based on thin liquidity.

However, profit-taking pressure due to short-term overheating has emerged as a key variable. The Relative Strength Index (RSI) has surpassed 75, entering a deeply overbought technical zone, and the daily candlestick's upper wick near $4.66 suggests that selling pressure is gradually intensifying as it approaches the $5 resistance. The immediate short-term resistance is identified as the $4.60 to $4.70 range.

Market analysis suggests that if NEAR Protocol fully breaks through this resistance, it will target the key psychological resistance level of $5. Conversely, if the short-term rally slows down and a correction occurs, the $4.00-$4.20 range is considered the primary support level, and the $3.60-$3.80 range is seen as a critical support level in case of further decline.

[Article Key Summary]

- NEAR Protocol surged from the $2 range to $4.66 in one go, then faced a supply wall near a major resistance level and settled at around $4.35.

- All major moving averages are trending upwards, and massive trading volume was recorded, but the Relative Strength Index (RSI) surpassed 75, indicating entry into a short-term overbought phase.

- If the $4.60-$4.70 resistance is broken, it could test $5, but defending the $4.00-$4.20 support level will be crucial if profit-taking occurs.

*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.*