Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
NEAR Protocol (NEAR) Market Update
Let’s take a closer look at NEAR Protocol (NEAR) and where it’s currently trading. Right now, NEAR is hovering close to its key resistance levels. For traders and investors, this is a crucial zone to watch closely.
You’ll notice something interesting if you turn on the moving averages on your chart. This resistance zone lines up with the 50-day moving average (50MA). Moving averages are essential tools in technical analysis—they often act as dynamic levels of support and resistance. In this case, the 50MA is currently acting as resistance, represented by the red line on the chart.
Now, let’s look at the Relative Strength Index (RSI). RSI is a momentum indicator that tells us whether an asset is overbought, oversold, or trading within a neutral range. For NEAR, the RSI is above the median line or the 50 level. This is a positive sign because it indicates some bullish momentum. If NEAR manages to break above its current resistance levels, there’s a strong possibility that the uptrend will continue, and the coin could potentially surge higher.
What Should Traders Do?
If you’re considering trading NEAR, here’s a possible strategy:
1. Wait For A Breakout
Place your buy orders if NEAR successfully breaks above the resistance zone. A confirmed breakout would signal that bulls are in control, increasing the likelihood of further upward movement. Breakouts are often accompanied by higher trading volumes, so keep an eye on that as confirmation.
2. Set A Cut-Loss Plan
While we’re optimistic about the breakout, you always need to plan for the other scenario. Place your cut-loss orders just below the current resistance box. Why? Because if NEAR fails to sustain its move above this level, it could be a sign of a fake breakout or further downward pressure. Protecting your capital should always come first.
What Happens If NEAR Fails?
If NEAR doesn’t manage to break above the resistance zone, we could see the price resuming its downtrend. It’s crucial to monitor how the price behaves around this key level. A failure to break out could signify that bears still have control, leading to lower lows in the short term.
Final Thoughts
NEAR Protocol is in a decisive position right now. The 50-day moving average acts as resistance, while the RSI shows bullish momentum. If the coin breaks above the resistance zone, it could open the door for a significant price surge. However, a failure to do so could mean the opposite—further downward movement.
As a trader, always trade with a plan. Whether you plan to buy the breakout or sit on the sidelines, stick to your strategy, and don’t let emotions guide your decisions. Always set your stop losses, manage your risk, and stay disciplined.
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