NEAR has been able to increase enormously in the last few days and has been pumped up without a real break. This is mainly because we are currently in a zone where we previously sold off heavily.
We are currently trading at around USD 4.30 and just before the first strong resistance zone. Above us is a 6 and 8H resistance zone. At the same time, there is still the 200-SMA as additional resistance.
So there is a good chance that we will see a first small correction in this area. The RSI and other indicators are already significantly overheated. A correction is also necessary here.
On the daily chart, this small pump is just a drop in the ocean. NEAR has already found first support in front of our green buy zone and has reversed the trend here.
But even in the larger time units we are now coming into the first resistance area. The Daily-EMA Ribbons are in the way and represent the entire downtrend. So we have to leave them at the top first.
In confluence with the clearly oversold small time units, there is much to be said for a short but severe correction, which could, however, be bought up again quickly.
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