Near Protocol (NEAR) has recently undergone a significant development, breaking through a critical trend line and signaling a potential bearish breakdown. Investors in NEAR should brace for a potential 18% retracement targeting the midpoint of the recent 121% rally at $3.35. However, a key level above $4.62 could reverse this downward trend.
Between December 18-25, the cryptocurrency Near Protocol experienced a notable surge, marking a 121% increase and creating a local peak at $4.62. Since then, the altcoin has seen an 11% decline and is currently trading at $4.08.
This decline not only eroded recent gains but also shattered the trend line connecting five lower highs during NEAR’s rally, indicating a clear reversal of the trend. The Relative Strength Index (RSI) for the cryptocurrency is currently hovering around the midpoint of 50, while the Awesome Oscillator (AO) is approaching its average level of 0.
A confirmed break from these significant levels would validate the onset of a bearish trend. In this scenario, a pullback to the $3.35 average becomes likely, representing an 18% drop from current levels. Further downward movement could push NEAR to a low volume level of $3.05, resulting in a total decline of 25%. In an extreme bearish scenario, the altcoin could reach $2.83, a 70.5% retracement level.
While the current bearish outlook seems logically consistent, broader market dynamics must be considered. Altcoins are developing amidst Bitcoin‘s price range movements. The continuation of this trend or an upward jump by Bitcoin could strengthen bullish sentiment, potentially lifting altcoins.
If the next move in the altcoin is bullish, and NEAR Protocol’s price manages to close a four-hour candlestick above $4.62, it would create a higher peak and challenge the bearish narrative. Such a development could trigger an 8.1% rally, potentially pushing NEAR to the psychological level of $5.00.
