Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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NEAR Protocol ($NEAR):

Overview

NEAR is currently trading at $4.63, sitting just above the 200 EMA on the 3-day time frame, which is positioned at $4.618. The asset has been consolidating inside a pennant-like structure for the past two months, with price action squeezing in a defined range.

The broader structure indicates long-term accumulation, with $8.079 as the upper bound of the wider range and $3.50 as the lower bound, a range NEAR has been trading in for over 10 months since March 2024.

Analysis

1. Current market positioning:
   • NEAR is attempting to maintain support above the 200 EMA in the 3-day time frame.
   • A wick rejection from $4.318, a strong historical support zone, suggests that buyers are actively defending this level.
   • Price action remains inside the pennant, with the next move likely to decide future momentum.
2. Key levels:
   • Supports:
     • $4.318 - A crucial horizontal support level.
     • $3.52 - A deeper support level, historically tested multiple times.
   • Resistances:
     • Upper trendline of the pennant structure - This dynamic resistance has capped price action in recent months.
     • $6.04 - A historically significant resistance level.
     • $8.079 - The upper bound of the long-term consolidation range.
3. Potential breakout scenarios:
   • Bullish scenario: A break above the pennant structure, reclaiming $6.04, could open doors for $8.079 and higher.
   • Bearish scenario: Failure to hold $4.318 may result in further downside, with $3.52 acting as a potential safety net.

Cryptonary's take

NEAR has been trading in a long-term accumulation range for nearly a year, indicating that it could be primed for a larger move in the coming months. The ongoing consolidation inside the pennant formation suggests that volatility compression is nearing an endpoint.

For now, the 200 EMA and the $4.318 level remain key areas to watch. A successful breakout from the pennant could trigger a run toward $6.04, while a failure to hold the lower supports could lead to a retest of $3.52.

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Optimism ($OP):

Overview

Optimism ($OP) has recently broken below a key daily demand zone ($1.60-$1.80) and has now tested the main daily demand between $1.44 and $1.33, which is a crucial area marked by the blue box on the daily chart. This new support range also aligns with the broader monthly demand zone, which is a larger structural support area ranging from $1.46 to $1.15, highlighted by the grey box on the monthly time frame.

Despite the breakdown from the previous range, $OP is showing a strong bounce, having gone down to $1.31 before recovering nearly 13% to $1.49. The reaction from this support zone indicates buying interest, but whether OP can hold and sustain a reversal will depend heavily on broader market sentiment, particularly Ethereum's movement and Bitcoin's consolidation.

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Analysis & key levels

1. Support levels:
   • Daily demand zone: $1.44 - $1.33
   • Monthly demand zone: $1.46 - $1.15
   • If $1.33 breaks, OP could retest lower areas within the monthly demand zone, possibly toward $1.15.
2. Resistance levels:
   • $1.60 - $1.80: The previous daily demand zone has now turned resistant.
   • $1.912 (200 EMA on the daily time frame): A key level to reclaim for bullish momentum.
   • $2.31: Significant horizontal resistance; reclaiming this would be a bullish confirmation.
3. Potential scenarios:
   • Bullish Case: If OP holds this demand zone and reclaims $1.60, it could signal a shift back towards $1.912 and $2.31 in the short-to-medium term.
   • Bearish Case: If $1.44 - $1.33 fails as support, OP could continue toward the $1.15 range, testing the deeper levels of the monthly demand zone.

Cryptonary's take

Optimism is at a make-or-break level, with support being tested within a key structural zone. The broader market's direction will heavily impact OP's movement, especially given its strong correlation with Ethereum.

The 13% bounce from $1.31 suggests demand, but for sustained upside, a reclaim of the $1.60-$1.80 range is necessary. If OP breaks lower, the $1.15 region within the monthly demand zone could serve as a final higher timeframe support before a more extended correction.

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