Key Takeaways
Following a prolonged bear market from 2022 to 2023, the NEAR Price has shown significant price movement, with a rally suggesting the start of a new bullish phase.
Wave analysis indicates NEAR may be entering its third upward wave, targeting higher highs if it breaks key resistance levels.
From January 2022 to October 2023, NEAR experienced a prolonged bear market, falling from a high of $20 in January 2022 to $1 by October 2023.
It then reversed, rallying over 886% to hit $9 on March 15, 2024, continuing a bullish trend after its Jan. 23 dip to $2.40.
Wave analysis suggests this rally is the first sub-wave of a five-wave upward pattern. A subsequent correction saw a three-wave decline to $4.50 on April 13 and then to $4 on July 5, aligning with the 0.618 Fibonacci retracement level. But a lower low followed slightly above $3 on Aug. 5.
The Relative Strength Index (RSI) on the daily chart reached oversold levels of 23%, which typically signals a reversal.
This correction likely marks the end of the second sub-wave, signaling the first pullback of the bull market.
We have seen bullish price action since Aug. 5, with its latest rise from Sept. 6, bringing NEAR up by 57%. A new bull phase could have started. Today’s high is slightly higher than Aug. 25, leading to a breakout above the descending resistance anchored at its yearly high.
However, to confirm its next bullish phase, NEAR needs to continue rising in the short term and surpass its Aug. 25 high by a significant amount.
Zooming into the hourly chart, we see that a new upward advancement has begun since Sept. 6, which could be a five-wave impulse.
This came after its first uptrend from Aug. 5 to 25 ended on a higher low of $3.44 on Sept. 6. These could be the first two sub-waves of the higher degree five-wave move, meaning that the uptrend from Sept. 6 is its wave three.
As such, it should come to a 1.618 Fibonacci extension level at $6.70.
Reaching those levels will indicate that the upward momentum started gaining traction and will likely continue for one higher high of $8.