Near Protocol (NEAR) has recently experienced a significant development, breaking through an important trend line and indicating a potential downturn reversal. Investors in NEAR should brace themselves for a potential 18% retracement targeting $3.35, the midpoint of the recent 121% rally. However, a key level above $4.62 could reverse this bearish trend.
NEAR Navigates Bearish Waters
The period between December 18-25 witnessed a notable increase in the cryptocurrency Near Protocol’s price, marking a 121% rise and creating a local peak at $4.62. Since then, the altcoin has experienced an 11% decline and is currently trading at $4.08.
This decline not only eroded the recent gains but also shattered the trend line connecting five lower highs during the altcoin NEAR‘s rally, showing 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 start of a downtrend. In this scenario, a pullback to the $3.35 average becomes likely, indicating an 18% drop from the current level. Further downward movement could lead NEAR’s altcoin to slide to a low volume level of $3.05 and result in a total retracement of 25%. In an extreme bearish scenario, the altcoin could reach $2.83, a 70.5% retracement level.
Chart Analysis and Future Scenarios
Although the current bearish outlook seems logically consistent, broader market dynamics must be considered. Altcoins are developing amidst Bitcoin‘s price range-dependent movements. The continuation of this trend or an upward leap by Bitcoin could strengthen bullish sentiment and potentially pull altcoins higher.
If the next move in the altcoin turns bullish, and the NEAR Protocol price manages to close a four-hour candlestick above $4.62, it will create a higher peak and challenge the bearish narrative. Such a development could trigger an 8.1% rally, pushing the altcoin NEAR to the psychological level of $5.00.
