Date: Fri, Jan 10, 2025, 05:50 AM GMT
The cryptocurrency market is navigating a rocky start to the year. After a bearish December, January’s historical tendency for downside performance is proving true, with Bitcoin (BTC) plummeting from $102K to its current level of $93K in just last four days. This sharp decline has driven BTC dominance to above of 58%, putting significant pressure on altcoins.
Among the affected tokens is NEAR Protocol (NEAR), a leading AI-focused blockchain token, which has dropped over 21% in the last 30 days and currently trades at $5.05.
Source: Coinmarketcap
Retesting a Major Breakout
Near Protocol (NEAR) recently achieved a critical milestone by breaking out of a Descending Triangle pattern that had persisted for nearly three years. This breakout occurred on November 17, 2024, when NEAR surged past its descending resistance trendline, reaching a high of $8.24. This marked the end of an extended period of consolidation and brought renewed optimism for the token's future.
Near Protocol (NEAR) Chart 1D / Coinsprobe (Source: Tradingview)
However, with the ongoing market correction, $NEAR is now retesting its breakout level near the $5 support zone—a pivotal point for the token’s trajectory. If NEAR holds this support and rebounds, it could rally back toward the $8.24 resistance zone, presenting a compelling recovery opportunity for investors.
For those eyeing long-term potential, NEAR’s midterm target of $20—a staggering 300% increase from its current price—remains in play.
Is a Bullish Rally on the Ahead?
The current retest of NEAR’s breakout level presents a critical juncture. A successful reversal here could ignite a bullish rally.
The broader market’s direction, especially Bitcoin's dominance which is now at 58%, will play a critical role in influencing these tokens’ trajectories. Along with this as BTC trading at $93K level, which is in the support zone of $91K to $94K will play crucial role ahead.
Conclusion
NEAR Protocol’s retest of its long-term breakout line is a defining moment for the token. Holding this support level could signal the beginning of a strong recovery rally, with potential gains for investors eyeing the $8.24 resistance zone and beyond.
As always, investors should monitor the broader market, particularly Bitcoin’s movements, which could significantly impact NEAR’s performance.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making investment decisions in cryptocurrencies.
