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.
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.
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.