Over the past few days, NEAR Protocol has made an impressive increase in price from a low of $13.18. Bitcoin has also rallied from the $40.5k support, and NEAR has been able to climb past supply areas with relative ease. The upward bounce provides several short-term targets as profit-taking levels for the bulls.
Source: NEAR/USDT on TradingView
Over the past two weeks, the price has found strong support at $13.1. Using the NEAR move from $17.664 to $13.183, the Fibonacci retracement and extension (white) were plotted. The 27.2% level at $18.9 was overlooked by a small margin, and NEAR saw a drop from $18.8 to $17.3 of the former supply.
This retest moved it from a supply zone to a demand zone. This is especially important because, in the past two weeks, NEAR has gone from $15.9 to $13.2 for the most part.
After testing the $17.4 area looking for demand and finding buyers, it looks like NEAR will rise once again. 61.8% expansion offers a $20.48 target for NEAR to hit in the next few days.
Theoretical basis
Source: NEAR/USDT on TradingView
The hourly RSI is back at 50 neutral after the pullback. It is likely that the RSI will turn up again, as previous highs have been dropped and retested to find buyers. A note of caution, perhaps, would be the slightly low volume on retest.
CMF was above +0.05 on the upside for NEAR but near -0.05 at press time. This shows that the capital flow has been directed to the market but not significantly.
Inference
The indicators show some upside strength after the NEAR, but the price action is much more convincing. It looks like NEAR will head towards $20.5 in the short term. However, NEAR could also see a move back towards $15.9 in a liquidity hunt. Such a move would force late trades to close at a loss, would encourage short sellers, and generally provide market makers with more opportunities to drive high NEARs. than due to volatility again. Hence, despite the bullish market structure, a retest of $15.9 before a move to $20 would not be impossible.