Will Fresh Bull Cycle Drive Breakout from Descending Channel?

With a fresh bull cycle taking an early start, will Near Protocol’s native token, NEAR, break a falling channel to hit $6?

The daily chart for the NEAR token shows a prolonged descending channel pattern characterized by a series of lower highs and a strong resistance trendline, suggesting a bearish trend for the altcoin.

Despite this, with the crypto market poised for a bullish reversal, NEAR is currently finding support at the $3.49 level. If the token manages to break through the trendline, could it rise to $6?

Channel Breakout Attempts by NEAR Token

Currently, the NEAR price maintains crucial support at $3.49 and challenges the overhead trendline. As the price increasingly interacts with this trendline, the likelihood of a breakout improves.

Recently, a failed bullish attempt to break the trendline saw NEAR drop by 2.26% on Saturday, from $4.28 to $4.19. This downtrend continued, with the price falling to $3.87 over three days, forming a three black crows pattern and resulting in a 9.54% decline.

However, undermining the bearish clutch, the NEAR token is back in action with an intraday gain of 3.84% from the opening price of $3.87. Currently, it is trading at $4.28, creating a bullish engulfing candle and teasing a fresh bullish cycle within the falling channel pattern. 

The MACD indicator, under the influence of the three black crow pattern, shows the MACD and signal line on the verge of a bearish crossover. However, the intraday gain avoids a negative crossover and teases a potential upside continuation. 

Meanwhile, the RSI line reveals an uptick and stands at 48.14. It is taking support from the 14-day simple moving average and is ready to surpass the halfway line.

Bullish Targets For NEAR Protocol

As the uptrend commences before approaching the critical support level of $3.49, the likelihood of a breakout rises with increasing trend momentum. According to Fibonacci levels, the next key resistance points are at 23.60% and 38.20%, corresponding to $4.62 and $5.32.

In the short term, this suggests a potential upside to $5.32, representing a 32% gain. Conversely, the $3.49 support remains robust, with a declining support trendline serving as a secondary defense.