The cryptocurrency market is experiencing a downturn, with both Bitcoin (BTC) and Ethereum (ETH) trading lower. Bitcoin has fallen by approximately 2%, while Ethereum has seen a decline of about 4%. This renewed weakness in the major cryptocurrencies is exerting pressure on several altcoins, including Near Protocol (NEAR).
NEAR has dropped around 7% today and is currently positioned near a critical support level. This level is pivotal in determining whether the token will experience a short-term rebound or continue its correction.
Falling Wedge Pattern in Play
Analysis of the 4-hour chart reveals that NEAR appears to be forming a falling wedge pattern. This is a recognized bullish reversal formation that often indicates the exhaustion of a downtrend and suggests a potential for a rebound.
The recent market correction has brought NEAR down to the lower boundary of this wedge, a zone that has demonstrated strong support over the past few weeks. At the time of this report, the token is trading around $2.02, with buyers actively defending this area.
The observed pattern indicates that previous dips to this boundary have been met with swift buying interest, signifying substantial accumulation activity near current price levels.
What’s Next for NEAR?
Should NEAR successfully maintain its position above the lower support of the wedge and build upward momentum, the initial significant upside target is projected to be around $2.13. This level corresponds with the upper trendline of the falling wedge.
A decisive break above the $2.13 to $2.15 range could initiate a bullish reversal, potentially driving NEAR towards the $2.40 to $2.50 region in the upcoming trading sessions.
Conversely, a failure to hold the $2.00 support level would place the bullish structure at risk. A breach below this crucial point would likely prolong the current downtrend, inviting further selling pressure before a new base can be established.