NEAR Tests $4.40 Support: Will It Bounce or Slide Further?

NEAR Protocol ($NEAR) has seen fluctuations within a narrowing price range as market participants closely monitor key support and resistance levels.

While the short-term price action shows growth, technical indicators suggest potential price pressure ahead as the market consolidates before the next significant move.

As of press time, NEAR’s price was trading at $5.08, up from $4.99 earlier in the day. This recent uptick marks a 2.01% increase in the past 24 hours. 

NEAR’s market capitalization has also risen to $5.94 billion, reflecting a 2.02% growth, while the 24-hour trading volume is at $303.87 million, showing a 21.32% drop compared to the previous day.

The token is currently testing a critical support level around the $4.40 mark. This price zone has historically acted as an area of support, and its behavior will likely dictate the near-term price movement.

A failure to hold this level could suggest further downside risks, especially if NEAR breaks below the $5.00 threshold. Moreover, a strong bounce from this support could signal the possibility of an upward move toward the higher resistance levels.

Technical Indicators: MACD and RSI

The Moving Average Convergence Divergence (MACD) provides important insights into the short-term price dynamics of NEAR. The MACD histogram shows a bearish trend, with the MACD line positioned below the signal line.

This suggests that momentum is leaning to the downside, signaling potential selling pressure. The MACD line is at 0.010, while the signal line is at -0.160, indicating a clear negative divergence. A continued downward trend could result in a price drop below key support levels, leading to further declines in NEAR’s price.

The Relative Strength Index (RSI) is another crucial indicator to consider. NEAR’s RSI currently sits at 40.42, above the oversold territory but within a neutral range.

This suggests that NEAR is not yet oversold but could be heading towards a correction before a potential rebound. If the RSI drops below the 30 mark, it would indicate that the cryptocurrency is oversold, which could set up an opportunity for a price bounce.

FAQs: