Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only
- NEAR was bullish at the time of writing.
- However, a major technical indicator is showing increasing divergence at press time.
NEAR protocol [NEAR] More than doubled in value after the January rally. It jumped from $1,247 to $2,721 but fluctuated later on. At the time of writing, NEAR was valued at $2,501 but was facing an increasingly likely correction due to deviations from a technical indicator.
is reading NEAR price prediction 2023-24
RSI divergence increasing near the RSI Is a correction likely?
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The daily chart showed a bullish NEAR which made a successful rally in January but met price rejection at the upper resistance at $2,721. However, higher price action was opposite to the Relative Strength Index (RSI).
The RSI has been trending lower since mid-January – a divergence with price action that could signal a possible correction in the coming days.
Based on the recent consolidation range high of $2,323 and $2,721, the correction might target the 50% Fibonacci support level at $1,984.
But the decline can also be held by the 100-day moving average, or the 61.8% Fibonacci level. These can act as short selling targets if a correction occurs.
However, the above bias will be invalidated if the bulls break above the 100% Fibonacci level at $2,721. Such a rally would allow the bulls to test the October support at $2,771 or the November high at $3,342.
NEAR has seen volatility in OI and decrease in active users
According to Coinglass data, NEAR’s volatile open interest undercut a strong bullish rally. At press time, the NEAR OI is down sharply but has stabilized, indicating a possible change in momentum that could support an upside for the NEAR.
However, a longer decline in OI could further undermine the upside as more money moves out of the NEAR futures market.
On the other hand, NEAR daily active users and trading volumes are down from mid-January. The trend shows that fewer accounts are trading NEAR, which could undermine the buying pressure needed for a strong bullish trend.
As a result, the bears could drop the value of NEAR and set it in a correction.