Near Protocol (NEAR) has broken a long-term ascending support line, invalidating its bullish structure in the process.
NEAR has been falling since hitting a record price of $20.54 on Jan 14th. On February 19, the price broke from an ascending support line that had been in place since July 2021.
So far, the price is down 58%, culminating in a low of $8.20 on Feb.
If the downward move continues, the closest support area would be at $6.40. The area has not been reached since December 2021.
Continuous NEXT decrease
Cryptocurrency Trader @AltcoinSherpa tweeted a chart from NEAR, stating that the $8-$12 region could provide strong support.
Since the tweet, NEAR has hit the bottom of this region. However, technical indicators are still bearish.
Both MACD and RSI are decreasing. Also, the former is negative while the latter is below 50. Both are signs of a downtrend. Finally, there are no signs of a developing bullish divergence, which often precedes uptrend reversals.
Therefore, the daily timeframe outlook supports the continuation of the fall at least up to the $6.40 horizontal support area.
short term movement
Measuring from the historic high, it is possible that the dip is an ABC (black) corrective structure. If yes, then NEAR is currently on the final C wave of this decline.
Giving the A:C waves a 1:0.618 ratio would lead to a low of $6.75, very close to the previously outlined $6.40 horizontal support area.
This ratio further increases the confluence near the $6.40 region and supports the possibility that a bottom will be reached there. Therefore, if NEAR reaches this area, the presence of bullish reversal signals will be critical in determining whether a reversal will occur.
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