NEAR Protocol is showing signs of potential recovery after enduring weeks of aggressive selling. A falling wedge pattern on the daily chart, combined with extreme oversold conditions and RSI divergence, indicates a possible bullish reversal. The key target for this potential move is the $4.66 resistance zone.

NEAR’s Current Market Trends

NEAR has been in a prolonged downtrend, characterized by sharp bearish expansions and successive lower lows. However, recent price movements are compressing into a well-known technical formation—a falling wedge. This pattern often signals a shift in momentum from bearish to bullish. As selling pressure diminishes and the price tightens within this structure, the likelihood of a breakout increases. This setup may offer traders an opportunity to capitalize on an early-stage reversal.

Key Indicators Supporting a Potential Reversal

Several factors suggest NEAR could soon transition from weakness to strength:

  • Falling Wedge Formation: NEAR’s price action is consolidating into a bullish falling wedge pattern, a reliable indicator of potential upside.
  • Oversold Conditions: The daily RSI (Relative Strength Index) has dipped into oversold territory, a historical signal for short- to mid-term bottoms.
  • RSI Divergence: Despite NEAR reaching new local lows, the RSI is printing higher lows, indicating a shift in underlying momentum away from bearish control.

Critical Levels to Monitor

The $1.48 level serves as a crucial support zone for NEAR. This area has not yet been fully tested, but if the price rebounds off this level while staying within the wedge structure, it could act as a springboard for a breakout. Conversely, a breakout above the wedge resistance with strong volume could propel NEAR toward the next significant resistance level at $4.66. This resistance aligns with previous price structure and fills inefficiencies left behind during earlier sell-offs.

What Traders Should Expect

If NEAR successfully holds above or bounces off the $1.48 support and breaks above the wedge resistance, it could trigger a bullish expansion toward the $4.66 target. However, failure to maintain support could delay the anticipated move. Regardless, the current setup indicates that NEAR is entering a critical zone with high potential for a major reversal.

For investors and cryptocurrency enthusiasts, monitoring NEAR’s price action in the coming days will be essential. With technical indicators and key levels aligning, the token may soon present actionable opportunities for those looking to capitalize on market reversals.

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