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Near Protocol (NEAR) has been on a wild bullish ride, climbing rapidly from $2.6 to $9 in just 6 weeks. This returned 3.5x worth of profits for buyers.
However, after this sharp bullish run-up, NEAR retraced to the $6 support level before rebounding to $8.
Over the past day, NEAR began another short term dip from $8 and a nearby support level could provide a low-risk long opportunity for buyers waiting to join the NEAR bullish run.
Taking a look at the broader altcoin market, the leading altcoin, Ethereum (ETH) continued to trade around the $3.5k price level after dipping from $4k.
Chart Indicators Show Divergence
While NEAR’s price retraced, its on-chart indicators hinted at a lack of conviction from sellers with the selling pressure lacking in strength.
Analyzing the Relative Strength Index (RSI) showed that it dipped from the upper limit of strong buying pressure but the neutral 50 mark has acted as a floor for buyers with selling pressure unable to go below the level.
Similarly, the departure of capital from NEAR was seen on the Chaikin Money Flow (CMF) but it also stayed around the zero mark to hint at neutrality in the capital inflows/outflows.
Combined, this hinted at the active presence of buyers with the support zone at $6.6 a potential buying haven for a continuation of NEAR’s upward trajectory. This buy support at $6.6 is further enhanced with another support level just at $6, affording buyers a double low-risk opportunity to join the bullish wave.
NEAR’s price action between 11 - 13 March also highlights the $6.6 support as a strong defense level for buyers. As such, buyers can set limit orders at $6.6 and $6 for maximum upside. Potential profit targets range between $9 - $11, depending on the buying strength.
Trade idea:
Buy limit: $6-$6.6
Profit target: $9 - $11
Stop-loss: $5.2
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
