Wait for a retracement if Near Protocol breaks above the key resistance

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  • Near Protocol has risen above the $4.6 resistance level

  • The token is among the top winners of the top 100 cryptocurrencies

  • RSI value is in the overbought zone

Near Protocol NEAR/USD is up 16% in the past 24 hours. The bullish sentiment is due to significant investor interest in the protocol lately. Trading volumes are up 47% in the past day to $681,243,479.

Near Protocol is a decentralized smart contract network that competes with Ethereum. It is distinguished by the use of sharding technology to increase transaction throughput. Sharding segments a network infrastructure and lets nodes handle a fraction of it.

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Transaction speeds have been a major challenge for the larger blockchain networks. Near Protocol makes name in space. It attracts lucrative blockchain projects that increase its overall value.

One such project is Sweatcoin, a protocol that combines tokens with the steps taken by users. The funds flowing into the project have pushed NEAR Protocol’s TVL to $388 million. A look at the near-term technical outlook confirms strong bullish momentum in Near Protocol.

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NEAR breaks above main resistance but is currently overbought

Source: TradingView

From the 4 hour technical chart above, NEAR has crossed above the $4.6 resistance. The cryptocurrency had failed in the past four attempts to rise above the level. Furthermore, the 20-day and 50-day moving averages have joined the support.

However, NEAR could be preparing for a near-term retracement. The RSI is in the overbought zone. At 72, the momentum indicator is at its highest level since July 29.

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closing thoughts

The NEAR token is under strong bullish momentum. The fundamentals around sharding technology and the fast and cheaper transaction speeds are increasing its popularity. Nevertheless, the token may face a retracement with the RSI value currently in the overbought zone. Investors should wait for the retracement before taking a long position.

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