With a fresh bull cycle taking an early start, will Near Protocol’s native token, NEAR, break a falling channel to hit $6?
The daily chart for the NEAR token shows a prolonged descending channel pattern characterized by a series of lower highs and a strong resistance trendline, suggesting a bearish trend for the altcoin.
Despite this, with the crypto market poised for a bullish reversal, NEAR is currently finding support at the $3.49 level. If the token manages to break through the trendline, could it rise to $6?
Channel Breakout Attempts by NEAR Token
Currently, the NEAR price maintains crucial support at $3.49 and challenges the overhead trendline. As the price increasingly interacts with this trendline, the likelihood of a breakout improves.
Recently, a failed bullish attempt to break the trendline saw NEAR drop by 2.26% on Saturday, from $4.28 to $4.19. This downtrend continued, with the price falling to $3.87 over three days, forming a three black crows pattern and resulting in a 9.54% decline.
However, undermining the bearish clutch, the NEAR token is back in action with an intraday gain of 3.84% from the opening price of $3.87. Currently, it is trading at $4.28, creating a bullish engulfing candle and teasing a fresh bullish cycle within the falling channel pattern.
The MACD indicator, under the influence of the three black crow pattern, shows the MACD and signal line on the verge of a bearish crossover. However, the intraday gain avoids a negative crossover and teases a potential upside continuation.
Meanwhile, the RSI line reveals an uptick and stands at 48.14. It is taking support from the 14-day simple moving average and is ready to surpass the halfway line.
Bullish Targets For NEAR Protocol
As the uptrend commences before approaching the critical support level of $3.49, the likelihood of a breakout rises with increasing trend momentum. According to Fibonacci levels, the next key resistance points are at 23.60% and 38.20%, corresponding to $4.62 and $5.32.
In the short term, this suggests a potential upside to $5.32, representing a 32% gain. Conversely, the $3.49 support remains robust, with a declining support trendline serving as a secondary defense.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
