Near Protocol, surging from $1.6 to $2.9... $2.2 becomes the first test for the rally.

▲ NEAR Protocol, NEAR/AI-generated image

Near Protocol (NEAR) has entered its first major support test after a strong rally in the altcoin market, standing at a crossroads between short-term profit-taking and the potential for trend continuation.

According to crypto media outlet U.Today on June 1 (local time), NEAR has entered its first significant support test phase after experiencing one of the biggest rallies in the altcoin market in recent weeks. NEAR surged from below $1.60 to around $2.90 in just a few days before entering a correction phase, with buyers now on the defensive to establish a new support base.

Following its recent decline, NEAR has shown stable movement in the $2.20 to $2.30 range. While the correction might seem significant in the short term, it is still considered a limited pullback compared to the preceding sharp rise. Corrections after rapid surges are often seen as a process to cool down overheated momentum and prepare for the next directional move.

Technically, NEAR maintains a strong structure. The price is stably above the 50-day, 100-day, and 200-day moving averages, which have also begun to turn upwards after several months of decline. The breakthrough of the long-term 200-day moving average, often used as a benchmark to distinguish between bull and bear markets, is considered particularly significant during the recent rally.

Trading volume also remains higher than in April and early May, signaling that investor interest has not significantly waned despite the correction. The recent decline is interpreted as profit-taking rather than a sell-off, which is considered a positive factor from a trend continuation perspective. The Relative Strength Index (RSI) has moved down from overbought territory but remains above 60, indicating that the upward momentum has not fully broken.

The current key support level is the $2.20 range. If buying pressure continues to defend this area, NEAR could form higher lows and re-challenge its recent highs in the $2.80 to $2.90 range. A successful completion of this support test could strengthen the interpretation that the recent surge was not a temporary rebound but the starting point of a larger trend reversal.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*