The cryptocurrency market entered the 2024 quarter 2 with a surge in volatility following the Bitcoin price pullback below $70000. This reversal triggered a fresh wave of correction in the majority of major cryptocurrencies including Near Protocol (NEAR).
Since mid-March, the NEAR price has experienced a steady correction, falling from $9 to $6, which marks a 33% decrease. However, with pullback sustaining above 50% retracement level and developing a bullish chart pattern, indicating this asset is poised for further growth.
Amid the broader market correction, the NEAR coin price showcased a retracement to the $6 psychological level. This support coinciding with the 50-day EMA and above 50% FIB level creates a high area of interest(AOI) for buyers.
On April 3rd, the altcoin witnessed its second reversal from $6 leading to a 13% upswing to reach $6.7. Currently, the Near protocol holds a market cap of $7.146 Billion, with a trading volume of $548.1 Million.
Furthermore, an analysis daily chart reveals the formation of a bullish pennant pattern as the current correction strictly resonates within two converging trendlines after the aggressive rally.
Source: Tradingview
The pennant chart pattern is commonly observed in an established uptrend as the price tends to consolidation/correct for a brief period to regain its exhausted momentum.
Technical indicators:
Bollinger Bands: The NEAR price challenging the upper boundary of Bollinger band indicator projects the buyers are aggressively accumulating this asset.
EMA: The 50-day EMA slope acts as a dynamic support for NEAR price during market pullbacks. Moreover, an uptick indicates the short rally align with broader bullish trend
Will NEAR Price Correction Reach $5?
With an intraday gain of 0.68%, the NEAR coin price is gradually leading to the upper boundary of the pennant pattern. Should a breakout occur, the buyers will gain a suitable launchpad to prolong the prevailing recovery trendline.
The post-breakout rally may drive the NEAR price to $10 milestone, followed by an ambitious target of $12.5.
On the flip side, a breakdown below the $6 support could extend correction to $5.1.
