Starting from the weekly timeframe, the candle of Near Protocol (NEAR) coin that got printed on the 17th of January to the 23rd of January had huge momentum and the volume of sellers in that was much strong. This candle engulfed the previous candle and by candle psychology, it shows the domination of bears right now.
This candle of Near has made a decrease by around 42% which is huge. On weekly, before this bearish engulfing the level of $17.611 got induced as we see almost equal highs which were to trap early sellers, and those were taken out. This shows that the price has got the fuel which was necessary.
Moving down to the Daily time frame, the price has shown some confluences which align with the weekly bias. Talking about the structure first, the price was breaking structure to the topside but the candle of 22nd of January broke the structure to the downside which showed the change of structure. Now the order flow is to the downside. Now recently the price of Near tapped in one of the daily Order Block which was around $9.472 but as the momentum is strong to the downside, the reaction was the price is giving at the moment can be merely considered as an inducement to take out early buyers.
The Strong Bearish Momentum – Near Protocol (NEAR)?
Along with this bearish momentum, the price left imbalance at some points, but talking about the main Point of Interest, the range between $13.579 to $15.134 is worth observing. Now we have two scenarios that can play out depending on where the price first taps. Although one can get short and long both opportunities as on higher time frame, the bias is still short so it’s preferable to short. So in case the price of Near taps in that daily imbalance zone, shorts can be taken. In case this zone doesn’t hold, there is one more zone from where shorts can be taken which is a Quasimodo Level which is at $17.487. Now, these are opportunities for taking shorts.
Is Taking Longs a Good Idea?
Now talking about longs, the Order Block which is at $7.694 Near, is a good zone. As the momentum has already been weakening because of the current consolidation, so AMD pattern can be expected to unfold. The manipulation phase and the momentum can let the price taps in that Order Block and once structure shifts are observed, longs then can be taken all the way till Quasimodo Level with TP 1 as that Imbalance Zone.
