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 plummeting from $102K to its current level of $93K in just four days.
Retesting a Major Breakout
Near Protocol 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. However, with the ongoing market correction, NEAR is now retesting its breakout level near the $5 support zone.
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 at 58%, will play a critical role in influencing these tokens’ trajectories.
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.
Investors should monitor the broader market, particularly Bitcoin’s movements, which could significantly impact NEAR’s performance.
