NEAR's Sharp Rally Comes Crashing Down Amid Technical Caution
Near Protocol (NEAR) has hit its first significant wall after one of the sharpest rallies of the year. The token's price dropped about 15% from its most recent local high of around $5.58, and it is currently trading at $4.78 on the daily chart.
The move came after a nearly vertical increase of more than 200 percent from the $1.60 to $1.80 range in August. The technical picture now encourages prudence as the price has fallen below the $5.00 psychological level and momentum indicators are flashing caution.
The relative strength index moved deep into overbought territory and momentarily approached the 85 area before sharply declining. Stretched readings seldom resolve sideways, and the cooling off frequently manifests as a wider retracement. The difference between the price and its moving averages conveys the same information, with the blue mid-term line at $3.00 being significantly above NEAR's current price.
The $3.80 to $3.70 range would indicate a 20% drop from the current level, which is typically where prices move back toward their averages. This zone coincides with both the rising short-term moving average and the breakout area around $3.80, where the rally picked up speed.