NEAR Breaks Above 21-Day Moving Average, Signals Shift in Short-Term Trend

NEAR Protocol (NEAR) has come to the fore after managing to move past the 21-day moving average (MA), which has been perceived to be an indication of the beginning of an overall trend shift. Market observers are keenly following the prices to see whether the token would be able to gather momentum after weeks of consolidation.

This has caught the notice of analysts who believe that the current structure of NEAR is an indication of the strengthening of the market, as the sentiment in the overall cryptocurrency market is stabilizing.

Break Above 21-Day MA Strengthens Bullish Case

One of the key technical achievements by NEAR is the recovery of the 21-day moving average. This is a resistance level that is commonly seen when the price is moving downwards and helps to establish if the selling momentum is slowing.

What is important is the fact that the price has not only broken through the Moving Average level but has been able to sustain itself at this level. This is a sign of the fact that the buyers have been entering the market with conviction and not because of a relief rally.

Also Read: NEAR Protocol (NEAR) Faces Decline, Technical Setup Suggests $2.35 Target

Higher Low Formation Signals Structural Improvement

The other technical formation that NEAR has made, together with the moving average breakout, is the formation of a higher low. The formation of higher lows shows that demand is emerging at higher price points, which is typical of trending markets.

Higher lows mean that the sellers are less in control, and the buyers are ready to buy at the early stages of the retracement. This increases the chances of the upside movement continuing.

Key Resistance Zone Comes Into Focus

With the short-term configuration on an improvement trajectory, focus is shifting to the overhead resistance area. A clean breakout above the area could pave the way for a strong move, and price action could accelerate as dormant players re-enter the market.

It has been pointed out that the recovery of this resistance level will cement the breakout and may lead to a move towards the $3 area, which had been a strong supply level in the past.

Momentum and Market Context Remain Crucial

Although the technical indicators are turning positive, market conditions will be an essential factor to watch for follow-through. A strong Bitcoin and overall risk-on sentiment in the crypto market can be an added boost to NEAR.

On the other hand, failure to break above the 21-day moving average may render the bullish formation ineffective and reverse the price to the consolidation phase. At the time, the key to this particular price movement turning into a larger trend is NEAR’s capacity to preserve the current gains.

Also Read: NEAR Protocol (NEAR) Price Rally: Experts Eye $3.35 Break and $16 Upside Potential