The NEAR price remains locked in a significant ascending channel, but the weakness to reach new highs creates a bearish divergence signal. Although it had a slight rally after demand at the USD 10.33 support, it might break through that level shortly.
Amid bearish market sentiment, the cryptocurrency NEAR Protocol (NEAR) tries to avoid higher losses. The price became temporarily detached from the dominant trend in the crypto market.
NEAR is trading at around USD 7.37 and has accumulated a 6.7% gain over the last 24 hours. Its daily trading volume is above USD 1.09 billion, and its market capitalization is around USD 5.05 billion. It occupies 20th place in the cryptocurrency ranking, according to CoinGecko.
NEAR Protocol is a layer one blockchain designed as a community-managed cloud computing platform. It aims to eliminate some limitations congesting some networks, like slow transactions, low performance, and poor interoperability.
What Led to the Current Rally of NEAR Protocol
As the launch of the NEAR Protocol platform occurred in 2020, its adoption is just starting. That has allowed the price of its currency to grow strongly over the last few months.
The daily volume of transactions has increased by 140% during the last month alone. The number of users has grown exponentially since the beginning of the network, rising by 60% over the past month.
Those figures reveal the level of adoption of that project since they have emerged amid a general slowdown in the crypto market.
Weekly Analysis of the Price NEAR Protocol
The weekly NEAR/USDT chart shows that the price has a lot of long-term bullish strength.
The value of almost all crypto market participants dropped or remained locked into sideways ranges. Even though the price of NEAR continued to look for new all-time highs, it did so rather weakly.
Currently, the price of that cryptocurrency remains locked in a significant ascending channel, a sign of resilience by the buyers. However, the lack of strength to reach new highs creates a bearish divergence between the price chart and the RSI indicator.
The price of NEAR might break the channel where it is through the bottom, leading to a significant drop.
After that happens, the prevailing upward trend may quickly curb selling, reaching the new low before resuming that direction.
Short-Term Levels in the Price of NEAR
Although the price of the cryptocurrency NEAR protocol recently had a rally, there are no signs of a strong bullish trend.
The monthly chart shows that the short-term tendency of the price of NEAR is bearish. It maintains the 8-day EMA and 18-day SMA crossed to the downside following that direction.
The cryptocurrency had a slight rally after generating demand at the USD 10.33 support. However, it will most likely break that level within the next few days.
Before thinking of a significant rise in the price of NEAR, it must overcome the resistance at USD 12.98. That increase would allow for the creation of increasingly high lows.
By Alexander Salazar
