Near Protocol Price AI Hype-Fueled Rally Gets Boost From Technical Setup
NOIDA (CoinChapter.com)— Near Protocol price rallied 49% since April 15 to reach a daily high near $7.3, riding on wider market sentiment and a growing interest in AI-related crypto tokens.
The recent price action of the token has resulted in analysts becoming bullish about NEAR prospects. Several posts flooding social media platforms predict a continued bull run for the Near Protocol token.
For instance, a crypto trader with the username ‘Dixit‘ shared that NEAR price might be poised to reach new highs following its recent rally. Moreover, another crypto analyst, ‘Johnny,’ stated that the recent dip in AI tokens might be a good buying opportunity.
Interestingly, the Near Protocol token is moving inside a bullish technical pattern.
NEAR Price Forms Bullish Flag Pattern
Meanwhile, NEAR price has formed a bullish technical setup called the ‘Bull Flag pattern.’
Bull flags consist of a flag pole formed after a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.
A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
The pattern is completed when the price breaks out of the flag area, continuing the previous upward trend. Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level.
According to the rules of technical analysis, if the pattern is confirmed, NEAR price might rally over 208% to reach the theoretical price target near $21.6.
Near Protocol Fails To Break Above $7
The Near Protocol token’s price rally failed to overcome the $7 price level as the crypto asset dropped 6% to a daily low near $6.8. If the downtrend continues, NEAR price could drop to the 50-day EMA (purple wave) support near $6.15.
Moreover, breaching the immediate support might force the Near Protocol token to the 100-day EMA (blue wave) support near $5.23.
However, interest in AI tokens could help NEAR price rise to the resistance near $7.6. Moreover, breaking above the immediate resistance might help the token target the resistance near $8.7 before paring gains.
The RSI for NEAR remained neutral, scoring 56.08 on the daily charts.
The post Near Protocol Price AI Hype-Fueled Rally Gets Boost From Technical Setup appeared first on CoinChapter.
Filed under: Bitcoin - @ April 24, 2024 12:16 am