November Week 2 Community Highlights: Bear, Bull and Crab
It was a frantic last few weeks to end October and start November with BTC, ETH and NEAR making new ATH’s. NEAR garnered mainstream attention with the announcement of their 800M DeFi grants program (250M in ecosystem over 4 years, 100M in regional funds, 100M on startups, and 350M for new DeFi Dao called Proxmity funds) on Oct 25th, right before NEAR Con 2021 that occurred the following two days. NEAR’s 800M DeFi grant raised the already high bar set by other layer 1s, dwarfing Harmony’s 300M fund. This catapulted NEAR from the mid $9.40s levels to reach an ATH of $13+.
At the time of writing, NEAR and general crypto markets have came down from their highs and have began consolidating. NEAR found strong support at the $9.70-$9.90 levels and has since rebounded to
Merchants “Bear of the Week”:
As we can see on chart, NEAR is unable to break above the resistance trendline but does have strong support trendline ..as far as NEAR maintains above 9.5$ it’s good to go. NEAR must maintain above $9.50 otherwise NEAR could go bearish, especially with the 20D and 50D MA skewing downwards.
Merchants “Crab” of the Week:
“Downwards triangle generally is bearish, so I am expecting a hanging man candle in the trend line which will mean NEAR is in the consolidation zone for upcoming week . I do not expect NEAR to drop to $9.50 against because there is strong support at 10.116. I predict NEAR will continue trading sideways for next week.”
For more reading on what is a Hanging Man Candlestick:
Merchants ‘Bull’ of the week:
In the NEAR 12H Timeframe we see a possible double bottom with NEAR holding the .5 and .618 fib levels nicely. And looking at the RSI indicator for NEAR, we can see a bullish hidden divergence forming with price consolidating but RSI dropping steadily. This is generally indicative of people profit taking and NEAR can go bullish again with a catalyst/more volume.
“Bullish Hidden Divergence occurs during a correction in an uptrend when the oscillator makes a higher high while the price action does not as it is in a correction or consolidation phase. This indicates that there is still strength in the uptrend and that the correction is merely profit taking rather than the emergence of strong selling and is thus unlikely to be last long. Thus, the uptrend can be expect to resume.”
Divergence & Hidden Divergence
Hidden and Regular Divergence Although divergence is not an indicator in that it is not mathematical construct, it is…
Overall there seems to be plenty of bullish signs. In longer time frames, we can see there is a bullish double bottom/W pattern forming. In shorter time frames, that bullish pattern is in the form of a cup and handle. The volume traded of NEAR has dropped dramatically post NEAR Grants news but still maintains extremely strong support at the ~$9.90 fib level.
Many eyes are on BTC and ETH leading the market and acting as a catalyst for NEAR, but the true catalyst could be the successful implantation of NightShade sharding for NEAR. There are some important levels (10.77, 11.48, 12,32) to look out for in order for NEAR to attempt a new ATH. And conversely, if BTC/ETH does sell off, NEAR hopefully will find continued support from $9.7-$10.2.
Hopefully this gives Merchants a broad overview of what to lookout for in the upcoming week. This is not meant to be treated as financial advice, merely educational content. For more technical analysis and educational content about NEAR, come join us at TG and Twitter:
Best of luck and happy hodling!