As the new trading week begins, the price of NEAR falls. The price opened higher but failed to maintain the positive sentiment as it retraced lower. However, in the late US session, the price rose above $15.0 after briefly hovering around $14.66.
Since April 4, the NEAR price has been trading in a short-term trading range of $14 and $18, with only minor deviations in between. Previously, the price had risen nearly 160 percent from its February low of $7.36. However, the bulls lack the conviction to extend their gains.
Currently, the price is hovering around the critical support-turned-resistance zone of $15.70.
The bearish RSI divergence since April 4 indicates that the price could break $15.70 amid strong selling momentum. If this is the case, investors will face their first downside challenge at the 50-day EMA (Exponential Moving Average) of $13.94.
A break of the aforementioned level will result in a new round of selling in the asset. On the contrary, in a bullish scenario, the NEAR price could extend its rally and reach the recent swing highs of $19.74.
The formation of the ‘hammer’ candlestick pattern is the reason for our bullish argument. This has the potential to reverse the price’s current bearish sentiment.
The momentum oscillator, the moving average convergence divergence, which is still above the midline with a neutral stance, also contributes to the bullish outlook.
Furthermore, if the acceptance rate exceeds the upper target, investors will roll up their sleeves to catch the next upside destination at $20.0.