NEAR Protocol - A Possible Swing Setup
I am a fan of the popular Proof of Stake blockchain, NEAR protocol from Alex Skidanov and Illia Polosukhin, and its native token, NEAR. I think they have a lot going for them, and this is, personally, something I prefer to DCA into. With that said, NEAR's price has, like all other altcoins, seen a less than impressive development in recent months.
The price of NEAR is currently trading at a price of 3.750. In the past, we have seen the price of NEAR trade above the 20-dollar mark. We may see it back around this level at some point. For now, I think there is a possible setup for a swing trade just around the corner. Let's take a closer look.
If we look at the daily chart and pull a fixed range volume profile from Feb. 2021 and up till today, we can see the all-time value area low is located at the 2.96 level. This is clearly a strong level of support and a place from which we can expect the price to bounce. In addition to this, we also have a high volume node, slightly above this, at the 3.336 level.
If we zoom in and pull a fixed range volume profile for the current range (back from May 26th up until today), we can then see the value low is placed at 3.1. This is just slightly above the all-time value area low.
We also have a strong level of support from the Daily timeframe, which is placed at 3.182. Untouched daily levels are some of my favorite zones to act as support and resistance. In addition to this, if we pull a Fibonacci retracement from the swing high at 6.11 to the swing low at 3.68 we can see that price had a pullback exactly to the 0.66 level. After this pullback, we can expect continuation to the Fibonacci extension of 1.236 level, which is placed precisely at 3.117 – just on top of all the other levels of support.
With all these levels of support stacked on top of one another, there is definitely confluence here. Because of this, I am looking to enter a long trade if we get a drop-down to this area.
Specifically, I am looking for a possible long trade around the 3.22 level with a stop loss at 2.89 and an initial target (for partial profit) at 4.40.
If you want to take this trade with me, sign up for an account with PrimeXBT.