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▲ NEAR Protocol (NEAR)/AI generated image
NEAR Protocol (NEAR) has surged over 200% in a month, entering a strong upward trajectory, but overheating warnings have been triggered.
According to cryptocurrency specialized media U.Today on September 28 (local time), NEAR Protocol (NEAR) showed a parabolic vertical surge, starting from around $1.70 in late August and recently soaring to approximately $5.3. Since the breakout phase began, buying pressure has been so concentrated that bearish candles have been almost impossible to find on the daily chart. In this process, the price gap with the 50-day moving average ($2.90), 100-day moving average ($2.40), and 200-day moving average ($2.10) has widened significantly.
The abnormal divergence from key trend indicators is identified as a sign of short-term overheating. The Relative Strength Index (RSI) remains in the extreme overbought zone in the late 70s, increasing the likelihood of a major correction or a prolonged sideways trend until the moving averages catch up. There have been precedents of rapid mean reversion after vertical surges in the past, with the sharp decline immediately after rising to $2.90 last May being a prime example.
Despite the strong upward momentum being maintained, there is a high risk of a sharp retracement at the current price level. Experts have identified the support of the breakout zone between $4 and $4.20 as a technical watershed. If this price range is defended, the bullish structure could continue, but if it falls below $4, the parabolic upward cycle could end.
[Article Key Summary]
-NEAR Protocol surged over 200% from $1.70 to $5.3 in a month, recording a steep parabolic rally.
-The Relative Strength Index reached the late 70s, and the divergence from moving averages widened significantly, increasing the risk of a short-term sharp decline.
-Defending the $4-$4.2 support level is considered a key zone that will determine future further increases and the end of the parabolic rally.
*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.*
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