As NEAR enters the latter stages of its correction phase, an analyst stated that if NEAR has ended its correction, there should be a rally. However, if the correction is not over, the NEAR/BTC pair should shed 15% more. But the technical indicator flashes a bullish divergence.
Crypto analyst Michael van de Poppe stated that if NEAR were entering the final stages of the correction phase, there could be a rally. Given that his prediction of the token ending the correction phase happens, there could be a rally, and the bullish outlook will only be established once the token crosses the $1.68 level. But on the other hand, if NEAR fails to hold above this level, then the correction phase is not over.
NEAR appears to be gradually entering a consolidation phase as the price structure begins to show signs of stabilization following its recent correction. The token has continued to form lower highs, but these highs remain relatively jagged, reflecting continued volatility and selling pressure whenever the price attempts to recover. However, the lower lows have become noticeably less jagged and more compressed compared with the earlier stages of the decline.
This contrast is important because it suggests that while sellers are still preventing NEAR from establishing higher highs, they are also struggling to push the price significantly lower. As the distance between the successive lows narrows, downward momentum could be losing strength. This behavior can indicate that buyers are beginning to absorb selling pressure and that the market is moving toward a period of equilibrium. If this consolidation continues, NEAR could eventually make a decisive move out of the range, with a breakout potentially signaling a broader reversal.
In addition to the above technical observation, another analyst spotted a bullish divergence on the RSI divergence indicator. When a bullish divergence happens on the chart, it is an indication that the prices will follow.
