The cryptocurrency market started quarter 2 of 2024 with increased volatility after Bitcoin's price dropped below $70,000. This led to a correction in many major cryptocurrencies, including Near Protocol (NEAR). NEAR's price has been steadily declining since mid-March, dropping from $9 to $6, a 33% decrease. However, the price pullback has stayed above the 50% retracement level and formed a bullish chart pattern, indicating potential for growth.

During a market correction, NEAR's price retraced to $6, a psychological level that coincides with the 50-day EMA and above the 50% FIB level, making it an area of interest for buyers. The altcoin saw a reversal from $6 on April 3rd, leading to a 13% increase to $6.7. NEAR currently has a market cap of $7.146 billion and a trading volume of $548.1 million.

A daily chart analysis shows a bullish pennant pattern forming as NEAR's price corrects within converging trendlines after a strong rally. This pattern typically occurs in an uptrend and reflects a temporary pause to regain momentum.

Technical indicators suggest that buyers are accumulating NEAR aggressively, with the price challenging the upper Bollinger band boundary and the 50-day EMA acting as dynamic support. An upward trend in EMA indicates alignment with the broader bullish trend.

As NEAR's price nears the upper boundary of the pennant pattern, a breakout could lead to further recovery towards $10 and potentially $12.5. However, a breakdown below $6 support may extend the correction to $5.1.