Key Takeaways
- NEAR rallied 886% from the January low to the March high.
- Currently testing support after a breakout from descending resistance.
- Possible correction to $4.10 before next upward move.
Near Protocol (NEAR) has undergone significant price movements, breaking above its descending resistance anchored at the yearly high, potentially signaling a new bull phase.
However, the momentum lasted until the end of September and has been struggling. Its latest lookout for support could be pivotal in uncovering whether or not NEAR has the potential to proceed into a sustained uptrend.
NEAR Price Analysis
From January 2022 to October 2023, NEAR experienced a prolonged bear market, dropping from a high of $20 in January 2022.
It reversed course with an impressive 886% rally, hitting $9 on March 15, 2024, after bottoming out at $2.40 in January.
Wave analysis suggests this rally represents the first sub-wave in a larger five-wave upward pattern. A correction followed with a three-wave decline to $4.50 in April and $4 in July, hitting the 0.618 Fibonacci retracement level before falling slightly above $3 on Aug. 5.
The Relative Strength Index (RSI) indicator signaled oversold conditions, indicating a potential reversal and the end of the second sub-wave correction.
Since Sept. 6, after establishing a double bottom, NEAR entered a recovery period, reaching a high of $5.80 on 26. As the price broke above the descending resistance anchored at the yearly high, this could have marked the beginning of a new bull phase.
The following downtrend in which NEAR is currently would, in that way, be its first bull phase correction, but can the price now hold above $4.50, or will it fall further?
NEAR Price Prediction
NEAR has started a new upward advance on the hourly chart since Sept. 6, possibly forming a five-wave impulse.
The uptrend from Aug. 5 to 25 ended at a higher low of $3.44, suggesting that the rise since Sept. 6 represents wave three of a larger move.
Its subsequent decrease should have maintained above $5.10, but the price fell to the descending resistance, testing it for support. Although there are certain problems with labeling the five-wave impulse, the decrease from Sept. 26 has more room for the downside.
This could be a new downtrend, resulting in lower values than in August, invading the starting bull phase, or a temporary correction before its next runup.
Considering that NEAR broke out above the descending resistance and maintained trading above it on the retest, the second is more likely.
However, we will evaluate these possibilities based on the depth and momentum of the next expected descending move. An interaction with the 0.618 Fib level could be seen in the short term. This could lead NEAR to a low of $4.10.
If the price bounces, there is a strong chance its next move will surpass its September high.
Near Protocol Price Prediction 2025: NEAR Could Experience Slow Growth
