When and how of NEAR traders entering a long position

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Since its mid-March lows, NEAR bulls pro­pelled an upswing that the sell­ers final­ly negat­ed at the $16 Point of Con­trol (POC, red). After that, the price has been in a tight phase whilst keep­ing its imme­di­ate trend­line sup­port intact.

Con­sid­er­ing the cur­rent sell­ing vig­or, the bears would aim to test the $15.2-$15.6 mark. Fol­low­ing this, any revival attempts could face an oppo­si­tion near its POC. At press time, NEAR trad­ed at $15.83,  

NEAR 4‑hour chart

Source: Trad­ingView, NEAR/USDT

Since its ATH, NEAR lost more than 64% of its val­ue and plunged toward its 11-week low on 24 Feb­ru­ary. It lost its cru­cial price points as the bears were in the dri­ving seat.

But the long-term floor at $7.6 sup­port­ed this descent and bol­stered a trend-alter­ing bull­ish come­back. Dur­ing this recov­ery, the alt marked a near­ly two-month trend­line sup­port (white, dashed) that the buy­ers have reli­gious­ly adhered to.

While the POC shunned the recent falling wedge (white) break­out, NEAR’s retrace­ment toward either of the trend­line sup­port could dri­ve a short-term revival. In which case, it would like­ly con­tin­ue its squeeze phase in the $15-$16 range before com­mit­ting itself to a retest of the $17.5 resistance.

Ratio­nale

Source: Trad­ingView, NEAR/USDT

The RSI under­took a grad­ual recov­ery as it sprung from its 39-mark sup­port. It still need­ed to find a close above the mid­line to height­en the chances of a break above the POC. The imme­di­ate sup­port at the 45-lev­el would be vital to hold on to pre­vent a poten­tial fallout.

Inter­est­ing­ly, the OBV saw low­er troughs in the last two days while the price con­tin­ued its ele­va­tion. So, any price recov­ery from its sup­port would affirm the exis­tence of a hid­den bull­ish divergence.

Addi­tion­al­ly, With the Aroon up (yel­low) still look­ing south, the alt could see a fur­ther pull­back before the bulls find their ground.

Con­clu­sion

Now, NEAR rather stood in a wob­bly sit­u­a­tion. Fur­ther retrace­ments from the cur­rent lev­el could find a cush­ion in the $15-$15.6‑range. Then, the bulls would like­ly gain enough thrust to chal­lenge its POC before a trend com­mi­tal move.

Besides, the investors/traders must keep a close on Bitcoin’s move­ment affect­ing the mar­ket struc­ture to make a prof­itable move.

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