NEAR price set up a triple tap setup, indicating a bottom reversal in the near future. The third tap has already led to a rapid rebound, but the bulls still have a long way to go. Interested investors can take advantage of this run-up.
A reversal pattern from the textbook
NEAR price swing low at $9.52 on January 24, leading to a 47% gain over the next two weeks. This run-up reversed completely and deviated below the aforementioned swing low. But quickly recovered and started another run that led to a 61% gain. The third and final retest of the $9.52 support level sparked a triple tap setup and led to a 25% gain, but is currently hovering around $11.01
This bottom reversal pattern often includes a central dip that is lower than the other two dips, which usually hover around the same trendline. The setup also predicts a downtrend reversal and a rally kickstart.
Investors can expect NEAR to rise at least 28% from its current position, hitting the $14.22 hurdle. However, if the buyers manage to bend the $14.22 barrier to a support level, it would open the way for the bulls to propel the altcoin to $16.10.
Assuming NEAR retests the $16.10 hurdle, it would be a 46% increase from its current position.
The bullish outlook for NEAR is supported by the recent spike in on-chain volume from 424 million to 837 million between March 8-11. This sudden uptick pushed volume well above the 200-day moving average at 623, confirming fund inflows into the NEAR blockchain.
In addition, the measure of social volume provides a tailwind for the ascending theorem by showing a recent spike from 85 to 573. This index has risen almost sevenfold in five days. Thus, this indicates that the retail interest in the NEAR token has increased.
After an exponential uptick, these peaks in social volume can be used to identify local peaks. However, as the crypto markets have been correcting for months, this rebound is indicative of bullish things to come for NEAR.
While things look bullish for NEAR, a four hour candlestick below the $9.52 support level will create an additional tag, invalidating the bullish thesis.