Near Protocol price consolidation hints NEAR could retest $6.50 soon
- Near Protocol price is consolidating inside a bullish flag setup, hinting at a 123% rally to $6.50.
- Investors might get an opportunity to accumulate NEAR between $3.33 and $3.50 before a breakout.
- A four-hour candlestick close below $2.75 will create a lower low and invalidate the bullish thesis.
Near Protocol (NEAR) price has shown incredible resilience to drawdowns despite the market volatility and short-term Bitcoin price crashes. As a result of this sideways movement, NEAR has set up a bullish continuation pattern that could result in a triple-digit breakout rally.
Read more: Near Protocol Price Forecast: NEAR bulls to catalyze 13% move
Near Protocol price sets the stage for a rally
Near Protocol price rallied 123% between December 18 and 26, 2023 and set up a local top at $4.62. This massive upswing was followed by a steady 38% decline that led to the formation of a parallel channel-like pattern with lower lows and lower highs. Combining the impulsive move with the consolidative phase, it seems like NEAR altcoin is trading inside a bullish continuation pattern known as the bull flag.
This setup, as seen in the chart below, consists of a flag pole and a flag, which are the 123% upswing and the 38% drop. A breakout will occur if the Near Protocol price produces a decisive four-hour candlestick close above the flag’s upper level at roughly $3.75. But ideally, a flip of the $3.90 hurdle will confirm the start of the bull rally for NEAR.
In such a case, the bull flag forecasts a 123% upswing, which is the height of the flagpole, added to the breakout point, which puts the target at $6.50.
While the upside target is ambitious, investors need to be patient as the rally could face significant resistance around the $5.87 weekly resistance level.
Also read: Near Protocol Price Prediction: NEAR could crash 15% as mean reversion probability spikes
NEAR/USDT 4-hour chart
While the bullish outlook makes logical sense due to the ongoing consolidation and market conditions, investors need to keep a close eye on $2.75. If the Near Protocol price produces a four-hour candlestick close below $2.75, it will create a lower low and invalidate the bullish thesis.
This development could attract sellers to book profits and drive the altcoins lower. As a result, the NEAR token could approach the $2.57 to $2.70 support area. A breakdown of these levels could, however, catalyze a 19% crash to the next key foothold at $2.07.
Also read: NEAR, STX, SOL: Three altcoins likely to create price tops soon as FOMO peaks
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
