Near Protocol has been on an uptrend since the start of the week. The 1-day chart shows no significant decline since Monday as the bulls maintain the upward momentum.
Thursday marks the fourth day of consistent increases. It is poised to continue the green trend, trading almost 3% above its opening price. On the 1-week scale, the altcoin has gained over 10%.
The latest upward trend follows last week’s six-day downtrend, which saw it shed over 11%. However, prior to the decline, it saw massive gains last Monday, surging by over 18% before retracing.
The sharp surge left many struggling to understand why it surged. There are several, most of which hinge on fresh developments within the ecosystem. Near Protocol took its commitment to promoting AI in the crypto space a step further by introducing a new UI for its Market.near.ai website.
Following this event, investors were excited about the IronClaw Reddit AMA scheduled for Mar 5. The announcement coincided with the 18% surge, suggesting that it was the trigger. Traders looked forward to new updates that could signal improvement in the ecosystem and attract new holders.
Nonetheless, the six-day downtrend was driven by massive profit-taking and the ensuing bearish state of the entire crypto market. Amid the ups and downs, a new pattern was slowly unfolding.
Near Protocol Print Cup and Handle
Zooming out from events in March shows that NEAR Protocol has been in decline since Jan 14. The downtrend extended into the first half of February, resulting in a 20% dip before recovery.
It consolidated most of the second half before starting its uptrend. The chart shows that the movement formed the cup, while the latest six-day decline formed the handle. Traditionally, this chart pattern is bullish, signifying further increases ahead.
NEAR broke out from the handle on Monday, indicating that the uptrend that follows this pattern is unfolding already. The asset will see further increases in the coming days based on the chart pattern.
However, it will face several hurdles along the way. The first is the neckline at $1.45. Its failed attempt at the mark last week suggests notable selling congestion. In hindsight, it was a tough support for an extended period, and as such, it would maintain the same trend when it’s resistance.
Flipping this key level will see the asset break above $1.50. It may hover around this mark before attempting $1.70. Breaking the barrier will increase the likelihood of the altcoin retesting $1.90.
In a nutshell, NEAR may be gearing up for a 30% surge in the coming days, and a decisive break of its 30-day resistance will confirm it.
However, indicators suggest that an attempt at $1.90 will not happen this month. While there is room for further increases, these metrics are blaring a warning. One outlook noted that the altcoin broke above the bollinger bands last week. Although it experienced a notable correction, it is yet to retest the middle band.
It resumed its uptrend but remains at risk of a massive decline. Aside from the bollinger bands, the relative strength index is at 61. While it shows room for further increases, it suggests the climb will be short-lived, as a reversal will follow once the asset becomes overbought.
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