NEAR Protocol Gains Investor Confidence and Breaks Key Resistance
NEAR Protocol (NEAR) is a decentralized application platform known for its high-speed transaction processing and low fees. It utilizes sharding technology called Nightshade to achieve scalability and security. The native cryptocurrency of NEAR, also called NEAR, has experienced a significant rise in price since February. This surge in price has been accompanied by a surge in investor confidence, as reflected in the increase in open interest value for NEAR Protocol.
A Surge in Open Interest Value Reflects Increased Investor Confidence
According to data from Coinglass, the open interest value for NEAR Protocol has jumped from $95.86 million to $296.5 million since the second week of February. This represents a growth of approximately 209.3%. The significant increase in open interest value indicates that investors are becoming more confident in NEAR and are showing increased interest in the cryptocurrency.
Rounding Bottom Pattern Signals Bullish Market Outlook
On the daily time frame chart, a well-known bullish reversal pattern called the rounding bottom can be observed. This pattern is characterized by a gradual decline in prices followed by a period of stabilization and then a gradual increase. The formation of this pattern suggests a shift in market control from sellers to buyers, indicating a bullish market outlook for NEAR Protocol.
Key Resistance Breakout Points to Potential Price Target
The recent breakout from the $6.12 neckline resistance of the rounding bottom pattern is a significant development for NEAR Protocol. This breakout indicates that buyers are gaining control and could potentially push the price of NEAR higher. If the breakout is sustained, the theoretical target for NEAR Protocol’s price is $11.2.
Indicators Support Bullish Outlook
- Bollinger Band Indicator: The sharp upswing in the Bollinger Band indicator suggests that buyers are dominating NEAR Protocol, further supporting the bullish outlook for the cryptocurrency.
- Average Direction Trend (ADX): The ADX slope reaching a high of 32% indicates that there may be occasional pullbacks in price, but overall, NEAR Protocol is expected to maintain a steady recovery trend.
Hot Take: NEAR Protocol on a Recovery Rally
NEAR Protocol has gained significant investor confidence and has broken through key resistance levels. The recent breakout from the rounding bottom pattern suggests a bullish market outlook for NEAR. With indicators supporting this outlook, it is likely that NEAR Protocol will continue its recovery rally. Investors should keep an eye on the sustained breakout and the $11.2 price target as potential milestones for NEAR Protocol’s upward movement.
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