NEAR Technical Analysis 1
In all markets, whether perfect or imperfect, they always tend to be influenced by a main behavior pattern, and this is what the theory of DOW states. DOW’s theory states that each asset even though it may be totally independent it will always be dependent on an index that will define its behavior. Today we are at a consolidation point with the strongest main index, the strongest index of cryptocurrency: Bitcoin. Thanks to this theory we can place ourselves in the altcoin market and make the most adequate decision. Now we must ask ourselves, in which market state are we at currently? Are we in accumulation? Or are we in crypto hibernation? In order to be able to answer this question, we’ll head to the graph and analyze it, because it never lies. The graph will always show us the sentiment of the buyers and sellers giving us the perspective and view of which side of the market is the winning side at this moment in time.
Let’s place ourselves on the graph with a time frame set to 1 day. On this graph we can identify the beginning of a downward trend. However, who decides if it’s a downward or bullish trend? The definition of a bullish trend is given by the capacity to visualize the lowest possible minimums over a period of time on the graph. Here we can start to build our hypothesis. If we have only registered one lowest minimum possible, then can we really say that on the 1 day graph the trend is downward and negative? I don’t think so. The cryptocurrency era was inspired by DeFi which is just now starting its bullish run, and we could be wrong of course, but that’s what technical analysis is for. What we can observe from this graph is a clear pattern of accumulation in which to be able to define and declare there is a downward trend beginning we would have to break through $1.80 with strength. So, we’re going to create an action plan for that pattern of accumulation. We have two scenarios.
The first scenario is A: this one defines an immediate increase in the price in which breaking $3.60 could let us experience new maximums by the end of the year, having as the main barrier the $6 resistance.
We also have scenario B in which we could see the breakage of the $1.80 resistance zone where we will place ourselves on three buying points defined by the biggest volume accumulations that NEAR coin has ever shown. Those accumulation volumes were at: $1.50 and $1.00. The idea is to be able to confirm that the downward trend has begun. For this confirmation, we need to see the reference coin bitcoin back at the $20,000 price at least. When bitcoin is in that zone, then we can go ahead and place two buying orders to make sure of two things. The first thing is to not place all your eggs in one basket. The second thing is to take the most advantage of the two buying zones that NEAR is offering. We’re going to set as our stop loss the zone that is below $0.50 selecting one fourth of the investment on the breakage of the $0.60 price, and a definite stop loss that includes one half of what’s left of our position at $0.10 and this one would be the highest risk scenario in which we could fall into. In this way, if scenario A is given then we could achieve at least three times what we are willing to risk.
In all markets, whether perfect or imperfect, they always tend to be influenced by a main behavior pattern, and this is what the theory of DOW states. DOW’s theory states that each asset even though it may be totally independent it will always be dependent on an index that will define its behavior. Today we are at a consolidation point with the strongest main index, the strongest index of cryptocurrency: Bitcoin. Thanks to this theory we can place ourselves in the altcoin market and make the most adequate decision. Now we must ask ourselves, in which market state are we at currently? Are we in accumulation? Or are we in crypto hibernation? In order to be able to answer this question, we’ll head to the graph and analyze it, because it never lies. The graph will always show us the sentiment of the buyers and sellers giving us the perspective and view of which side of the market is the winning side at this moment in time.
Let’s place ourselves on the graph with a time frame set to 1 day. On this graph we can identify the beginning of a downward trend. However, who decides if it’s a downward or bullish trend? The definition of a bullish trend is given by the capacity to visualize the lowest possible minimums over a period of time on the graph. Here we can start to build our hypothesis. If we have only registered one lowest minimum possible, then can we really say that on the 1 day graph the trend is downward and negative? I don’t think so. The cryptocurrency era was inspired by DeFi which is just now starting its bullish run, and we could be wrong of course, but that’s what technical analysis is for. What we can observe from this graph is a clear pattern of accumulation in which to be able to define and declare there is a downward trend beginning we would have to break through $1.80 with strength. So, we’re going to create an action plan for that pattern of accumulation. We have two scenarios.
The first scenario is A: this one defines an immediate increase in the price in which breaking $3.60 could let us experience new maximums by the end of the year, having as the main barrier the $6 resistance.
We also have scenario B in which we could see the breakage of the $1.80 resistance zone where we will place ourselves on three buying points defined by the biggest volume accumulations that NEAR coin has ever shown. Those accumulation volumes were at: $1.50 and $1.00. The idea is to be able to confirm that the downward trend has begun. For this confirmation, we need to see the reference coin bitcoin back at the $20,000 price at least. When bitcoin is in that zone, then we can go ahead and place two buying orders to make sure of two things. The first thing is to not place all your eggs in one basket. The second thing is to take the most advantage of the two buying zones that NEAR is offering. We’re going to set as our stop loss the zone that is below $0.50 selecting one fourth of the investment on the breakage of the $0.60 price, and a definite stop loss that includes one half of what’s left of our position at $0.10 and this one would be the highest risk scenario in which we could fall into. In this way, if scenario A is given then we could achieve at least three times what we are willing to risk.