The NEAR protocol retested the $5 mark after breaking through months of resistance. Will the NEAR token rebound to $7.71 or will it fall to $4.50 ahead?
Following a broader market correction, the price of NEAR’s native token experienced a bearish reversal from a critical resistance level. Over the past two days, the pullback has increased by almost 10%, returning the token to the psychological support level of $5.
Will this bearish extension lead to a fall to the $4.50 support or will the rebound after the retest take NEAR price closer to $7.71? Let’s dive into the details.
Analysis of prices near the protocol
With a bullish reversal from key support at $3.522, Near Protocol’s native token surged from $3.50 to $5.75. The bullish retracement was a 64.22% gain and seven bullish candles in a row.
However, the recovery rally failed to sustain above the $5.50 mark, resulting in a bearish reversal. The bearish reversal began due to massive supply at the 38.20% Fibonacci level at $5.56. It accounts for a price drop of almost 10% in two days and the formation of the evening star pattern.
Additionally, the recent pullback suggests that exponential moving averages (EMAs) are likely to continue their sideways trend. The pullback caused the gap between the MACD and signal lines to narrow, causing the bullish histograms to fall in intensity.
Transactions and fees improve compared to the closest protocol
Near Protocol’s on-chain performance is showing positive signs, especially in the ongoing bull market. During the April 2024 rally, transaction fees topped $60,000.
Now this trend is being restored. Exceeding the $30,000 transaction fee could accelerate the recent recovery. Moreover, the number of daily transactions continues to reach higher lows.
On Tuesday, the total number of transactions reached 7.5 million, with 982,375 new addresses added to the network.
Given these rising numbers and improving market conditions, NEAR’s price may rise in the near future.
Will the uptrend reach $7.71?
On the daily chart, the NEAR token price has surpassed the long-term multi-month resistance line. Essentially, the ongoing rollback represents a potential retest.
If the price holds above the dynamic support (as indicated by the middle line), the uptrend may continue, breaking through the $5.56 level (38.2% Fibonacci retracement). In this scenario, the bullish move could reach the 78.6% Fibonacci level of $7.71.
