NEAR token sailing on windless waters after establishing this range
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
The price action of NEAR Protocol has formed a range in the past week, and at the time of writing, it had found some demand at the $10.5 area. Bitcoin also neared some resistance near the $39k area. A move higher for Bitcoin could likely take NEAR past the range highs as well. Buying volume has been steady but not significant enough yet to effect a reversal of the previous trend.
Source: NEAR/USDT on TradingView
The $9.8 and $11.87 are levels of support and resistance respectively that have been significant multiple times in the past. At the time of writing, the price has been trading within a range between $10.05 to $11.77 over the past few days. It can also be seen that the mid-point of the range has been respected by the price. It represents the 50% level within the range, another significant level (in the near term).
When the price rose above the highs recently, a bearish divergence between price and momentum was seen. A previous area of supply has now been flipped to demand (cyan box).
Therefore the range lows and highs and the mid-point are the levels to watch out for NEAR. A move above or below the mid-point can flip bias within the range, while a breakout from the range will set a new bias for the next few days.
It is to be noted that even the $12.5 area has been swept in search of liquidity recently, so a bullish breakout from the range need not necessarily materialize into a move upward but could just turn out to be a trap.
Source: NEAR/USDT on TradingView
The RSI divergence at the range highs has already been mentioned. When trading within a range, the RSI regularly chops up the neutral
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