Falling wedge pattern sets stage for recovery

NEARs price action has been squeezing into a falling wedge, a reliable technical formation that typically resolves with a strong move to the upside. The contracting range suggests selling pressure is slowing, and as price tightens within the wedge, a breakout becomes more likely. Traders often view these setups as opportunities to catch an early-stage reversal, especially if volume confirms the move.

At the same time, NEARs daily RSI has entered deep oversold territory, historically a key signal for short- to mid-term bottoms. More importantly, RSI is printing higher lows even as price records new local lows. This bullish divergence is a sign that underlying momentum is shifting away from bears and often precedes sharp, impulsive reversals once structure breaks.

The $1.48 level remains a crucial support zone and has yet to be fully tapped. If price tests and holds this level while remaining inside the wedge, it could serve as the springboard for a breakout. On the flip side, a clean breakout with volume confirmation could propel NEAR toward the next major resistance at $4.66—an area that aligns with previous structure and fills inefficiencies left behind during the prior sell-off.

What to expect in the coming price action

If NEAR holds above or rebounds off the $1.48 support and breaks above wedge resistance with conviction, its likely to trigger a bullish expansion toward the $4.66 target. However, failure to hold support could delay the move. Either way, the setup suggests that NEAR is entering a high-potential zone for a major reversal.