NEAR Testing Support After A 15% Retrace From Local Highs: Top Trader Shares Entry Opportunity

NEAR Protocol (NEAR) is trading at a crucial support level, following a significant 15% retracement from its recent local highs. This retracement has brought the asset to a key price area, garnering the attention of traders and analysts closely monitoring the market for signs of a potential uptrend continuation. 

The recent earnings report from NVIDIA, the second-largest company in the world by market cap, exceeded expectations and has sparked optimism about AI-driven innovations. NEAR, with its strong ties to AI development, is expected to benefit from this momentum in the long term.

Analysts and traders share technical analyses suggesting that NEAR could see a bullish reversal in the coming days, capitalizing on its strategic position within the AI sector. The next few days will be critical in determining whether the price can maintain its support and resume its upward trajectory.

NEAR’s Crucial Level: Support or Bull Trap?

NEAR is currently trading at $4.385, a crucial level that has served as significant resistance for the past month and is acting as support. This price level is now under intense scrutiny from traders and analysts, who see it as a potential turning point for price action. 

Among those sharing their views online, one stands out: prominent crypto analyst and trader Dami. On X, Dami highlighted this critical level as an excellent entry point, suggesting that it could be a foundation for a significant upward move.

The optimism around NEAR’s potential is fueled by broader market developments, including NVIDIA’s impressive earnings report and the anticipated interest rate cuts. These factors could create a favorable environment, possibly leading to massive gains in the coming weeks. 

Dami also warns of the risks involved. Should the price fail to hold this crucial level, the bullish thesis could be invalidated quickly, potentially causing the asset to face further declines. The next few days (or even hours) will be pivotal in determining whether traders can capitalize on this opportunity or if the market will turn against it, making this a critical moment for investors.

NEAR Technical Analysis

NEAR currently trades at $4.385, just below its 4-hour 200 moving average (MA), which is $4.406. This moving average is a critical indicator of price strength. When the price trades above this level, it typically signals short-term strength, indicating a bullish trend. Conversely, when the price falls below this moving average, it suggests a weakening trend and potential bearish pressure.

For NEAR to advance toward higher prices, it must consistently reclaim this 200 MA and close above it. This level acts as a significant resistance point, and sustaining above it would be a bullish sign, reinforcing a potential upward trajectory.

The market is experiencing indecision and fear, which can lead to rapid price shifts. Therefore, investors must monitor this moving average closely. Historically, when the price changes direction around this level, it tends to do so swiftly. Staying alert to these movements can provide timely insights and help make informed trading decisions.

Featured image created with Dall-E, chart from Tradingview.com