Near Protocol (NEAR) has demonstrated remarkable resilience against market turbulence and short-term Bitcoin fluctuations, standing firm amidst volatility. The recent sideways movement of NEAR’s price has laid the groundwork for a potentially bullish continuation pattern, suggesting the possibility of a triple-digit breakout rally.
Between December 18 and 26, 2023, Near Protocol witnessed an impressive 123% rally, reaching a local peak at $4.62. Subsequently, a steady 38% decline ensued, forming a parallel channel-like pattern characterized by lower lows and lower highs. This combination of the upward surge and the consolidation phase suggests that NEAR may be trading within a bullish continuation pattern referred to as a bull flag.
Examining the chart, this pattern involves a flag pole (the 123% upswing) and a flag (the 38% drop). A breakout becomes imminent if the Near Protocol price achieves a decisive four-hour candlestick close above the upper level of the flag, approximately at $3.75. Ideally, confirming the onset of the bull rally would involve overcoming the $3.90 hurdle.
In the event of a successful breakout, the bull flag pattern predicts a 123% upswing, calculated as the height of the flagpole added to the breakout point, setting the target at $6.50. While this upward target is ambitious, investors are advised to exercise patience as the rally may encounter substantial resistance around the $5.87 weekly resistance level.
Despite the logical appeal of the bullish outlook driven by ongoing consolidation and market conditions, vigilance is crucial, with a key focus on the $2.75 level. A four-hour candlestick close below $2.75 would establish a lower low, jeopardizing the bullish thesis and potentially prompting profit-taking by sellers. This scenario could lead NEAR towards the support range of $2.57 to $2.70. Further breakdown could trigger a 19% decline to the next significant support at $2.07. Investors are urged to monitor these levels closely for informed decision-making.
