NEAR Protocol (NEAR) – Expected to come under massive selling pressurePosted on Thursday, September 22 2022 at 8:15 pm GMT+0000
NEAR Protocol (NEAR) has been creeping lower over the last couple of days, coming close to confirming a bearish trend reversal pattern after the summer rally from the mid-June 10-month low hit a snag in the vicinity of the tough late May resistance of 6.55.
As the price is now hovering near the July 26th bottom of 3.57, the negatively charged Ichimoku lines are indicating that bearish forces are remarkably active, while the oscillators are suggesting that the next move will likely be to the downside. The momentum indicator is diving in the bearish waters, the KST which lately deflected off its equilibrium level is now maintaining a negative slope beneath its signal line, and the Awesome Oscillator is decelerating in the negative territory.
So, a decisive close below the 3.57 level will empower the negative impetus leading the way toward the 161.8% Fibonacci extension level of 2.71, located just below the June 18th bottom. If downside pressures prevail, the 227.2% Fibonacci extension level of 1.67 may come under examination.
Otherwise, if buyers manage to mold a strong foothold near the 3.57 barricade, they may meet initial upside constraints from the Ichimoku lines at around 4.05 – 4.41, before challenging the nearby cloud. Successfully overcoming the latter, the price could then test the September 12th peak of 5.28.
To summarize, negative risks are increasing, and NEAR Protocol is expected to come under massive selling pressure following a daily close below 3.57.