Merchants of $NEAR Trading Retrospective: Week of June 7th
Welcome to the first edition of weekly trading updates on $NEAR price action by the Merchants of NEAR (MoN) Guild. For the week of June 7th, we have three technical analyses from our resident Merchants analysts. From now on you can expect weekly updates from our analysts on the MoN Medium channel. To learn more about technical analysis and try it out for yourself, join the MoN Weekly Trading Contest!
Overall, our analysts agree that current market conditions are bearish. While a general upward trend is to be expected of NEAR in the long term, the immediate price action of $NEAR could be volatile, though support seems to be formed around the 2.6 line.
Bearish Market, Bullish Overall
Looking at the NEAR weekly chart, we can discover that there is some engulfment at the top. The top of the chart is showing you that those spikes there are gradually bearish. They have a little margin between them but they are all bearish. When you check the engulfing you’ll discover that this market is bearish at this point.
The last candlestick is a doji telling you that the market at this point is indecisive. But if we go beyond the single candlestick we can look at the engulfing part and we can see we have a bearish pennant. With those 3 engulfments we have 3 smaller candlesticks. The next candlestick will either be a short bear candlestick or a long bullish candlestick.
From the trend line, it is clear that the trend is an overall bullish trend though its slope is steeped to a low degree. This bullish trend is a little weaker than it should be, but it looks like it will be bullish in weeks to come.
— Yuppie, Merchants Analyst.
$2.52 Defended, Time to Accumulate
NEAR has a weekly M top structure at the moment and is consolidating in the Reload Zone between 0.786 and 0.618 fibonacci extension. Contrary to a V top structure like other assets in the market that will revisit the previous top. An M-top structure needs more time to take more momentum. So the 0.786 and 0.618 is the perfect location to accumulate some NEAR and make big gains again. From where the price is right now that is 150% from the ATH. This crash brought back some new opportunities to make some gains.
The levels of 2.52 dollars are defended very well so price should not go lower than that. We only see some wicks there but these are not relevant for the price analysis. To have bullish momentum again we should break above 3.65 dollars. I say it again, prices between 2 and 3 dollars is the zone to accumulate some NEAR and have the greatest upside. At the moment we are in a range between 2.52 dollars and 3.62 so as long as we don’t have a resolution between this range whether it is on the upside or the downside we will still be going sideways for a while.
— Misinformed Block, Merchants Analyst.
Support at $2.6, Resistance at $3.55
NEAR price has been in a (not so steep) upward trend since May 23rd, making higher highs and higher lows since then. There´s clear support at 2.6 and strong resistance at around 3.55. Right now, NEAR price is moving upwards to test the resistance at 3.5 once again in the following days. In addition to that, it is also approaching the 180d SMA, which it will very likely find almost at the same time with the resistance. If in the following weeks NEAR price breaks above the resistance AND the 180d SMA, then we can expect a stronger upward trend. Otherwise, if it cannot break the resistance or the SMA, then we might expect the price to move down and retest the upward trend line or the support at 2.6.
— NEAR Geek, Merchants Analyst
The biggest takeaways from the analysis above was strong support levels around 2.60 levels with resistance around 3.50 levels. This indicates it is a good time to accumulate if NEAR is under 3.00 range.
The weekly low was on June 8th, 15:20 where it touched the 2.70 but promptly bounced back to test 3.30 less than 36 hours later. From there, its been oscillating between the 2.80 and 3.20 before finally consolidating and slowly moving upwards to secure 3.00 levels. Overall pretty strong read on the floor for NEAR. Moving into next week the biggest indicator will be if NEAR can sustain above 3.00 and eventually test 3.50 resistance levels.
As a clear disclaimer the Merchants of NEAR Guild is an opinion guild, sharing insights and personal beliefs on the state of $NEAR. It does not offer financial advice. Anyone looking to invest should consult a tax and investment professional.