NEAR Protocol native token NEAR is drawing significant attention from market analysts, with a bullish ascending triangle pattern suggesting a potential breakout.
According to chart analysis by the analyst VipRoseTr, NEAR is trading near a critical support level reinforced by its 50-day moving average (MA). This setup, coupled with growing adoption and high activity levels, positions NEAR as one of the most promising projects in the blockchain space.
$NEAR/USDT Poised for Bullish Breakout: Ascending Triangle in Focus 🚀"#NEAR Protocol is trading within an ascending triangle pattern, a bullish continuation setup.
The MA 50 is acting as support, and a bounce from this level could signal the beginning of a strong recovery.… pic.twitter.com/mmyUS6i5PT
— Rose Premium Signals 🌹 (@VipRoseTr) December 30, 2024
Ascending Triangle Signals Bullish Momentum
The price of NEAR/USDT is moving in an ascending triangle from which we can expect a continuation of the upward trend. This technical structure is a frequent indication of the subsequent increase in prices, reflecting increased purchasing interest.
The 50-day moving average is currently acting as support. A potential breakout from here suggests that the trend is turning positive.
According to the analysts, possible breakout levels at $5.70, $7.00, and $8.40 are expected if the bulls prevail and take the price past the current range. The first being a short term high while the other two are suggestive of intermediate to longer term rebounds.
At the time of writing this article, NEAR is valued at $5.132 with a 24-hour increase of 0.06%. The price has been trading in the range of $4.953 to $5.284, it means that it has moderate intraday volatility.
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Moving Averages and RSI
The 13-day moving average at $5.450 and the 49-day moving average at $5.835 are currently the resistance levels. Using these metrics reveals the short term and the intermediate term trend as bearish since the price is below both the moving averages. But, if the prices break through these levels, it will open a way to a strong rebound.
The RSI reading at the moment is at 38.81 which is close to the oversold levels signaling that bearish pressure is losing steam. If the RSI goes below 30 it will validate the oversold zone and it will also attract buyers and lead to a reversal.
On the bearish side, a breakthrough of the RSI below the 40 level could indicate increasing bearish pressure and prepare the ground for a new decline in the price.
Support and Resistance Levels Define Market Dynamics for NEAR Protocol
NEAR protocol support area is at $5.00, which corresponds with the present consolidation pattern. A breakdown of this level may open the door to a retest of $4.50. This level is an important long-term support which if broken may cause a further depreciation.
Bulls’ focus levels lie at $5.450 and $5.835, which can act as barriers to further upwards direction. If these are violated NEAR may continue the upward movement which would support the potential ascending triangle formation.
Despite the recent correction, the trading volume is still quite low, which suggests that the market turnover has decreased. This can be seen as a lack of clear trends and breaks to the buy or sell side of the market since the traders wait for the next direction signal.
The general market sentiment remains bearish. As evidenced by the price trading below key moving averages as well as the RSI close to the oversold zone.
NEAR Protocol Leads Blockchain Adoption in 2024
In addition to the technical standards, NEAR Protocol has become one of the most active blockchains. NEAR was reported to have had an average of 2.7 million DAAs in 2024 as per CryptoRank, which is a 766% YoY increase.
This performance positions NEAR in the leading bracket of the blockchain ecosystem given its growing user base and ecosystem integration.
This growth is in line with NEAR’s constant work on boosting scalability, reducing transaction fees, and backing decentralized applications (dApps). This is because NEAR has concentrated on developer solutions and communication between different chains, which has led to the project’s fast growth. This is evident from the number of daily active addresses it maintains, showcasing EOS’s significant participation in the blockchain ecosystem.
Solana ranks second with 2.6 million DAAs, which is a 702% YoY increase attributed to its high-performance infrastructure and strong dApp ecosystem.
