Near Protocol (NEAR) is holding on above the previous all-time high level. As long as it is doing so, the bullish structure remains intact.
NEAR has been moving downwards since Oct 26, when it reached an all-time high price of $13.22. So far, the drop has led to a low of $6.20, which was reached on Dec 4.
However, NEAR bounced afterwards. The bounce served to validate the $7.30 area as support. This is a crucial area, wince it acted as the all-time high resistance throughout March – May.
Afterwards, once the token broke out on Sept 8, it proceeded to reach the aforementioned all-time high price.
Interestingly, NEAR has deviated below this area twice before reclaiming it and moving upwards.
The ongoing upward move is also supported by technical indicator readings.
The MACD, which is created by a short- and a long-term moving average (MA), is moving upwards and is nearly positive. This means that the short-term MA is moving faster than the long-term one. It often occurs during bullish trends.
The RSI, which is a momentum indicator, has already moved above 50. This is considered a sign of a bullish trend.
Therefore, the outlook from the daily time-frame suggests that the trend for NEAR is bullish.
Short-term movement
The daily chart shows that NEAR could still be trading inside an ascending parallel channel.
In this case, the Dec 4 decrease was only a deviation, since the support line of the channel was reclaimed shortly afterwards.
However, NEAR has to touch it once more and validate it as support in order to make this occurrence valid.
Cryptocurrency trader @pierre_crypt0 outlined a NEAR chart, stating that the token could continue moving upwards if it manages to reclaim the $10 area.
Since the tweet NEAR has fallen slightly, dropping below the $10 area.
In order for the upward movement to continue, it would be ideal for the token to find support inside the $8.35 – $9 area, which is created by the 0.5-0.618 Fib retracement support level and create a higher low.
NEAR wave count
The wave count does suggest that NEAR has just completed wave two of a five wave bullish impulse. Wave two is corrective and was contained inside the ascending parallel channel.
In order for the count to remain valid, the token has to continue trading above the $6.12 low of Dec 4.
If correct, the rate of increase would be expected to accelerate greatly, since wave three is the sharpest out of the five wave upward movement.
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