The NEAR Protocol appears to be developing a cup and handle formation, which could signal upcoming bullish momentum for the cryptocurrency. Analyst Sjuul has pointed out that the cup, characterized by a shallow U-shaped consolidation, has seen the token frequently testing its resistance level, often referred to as the neckline. This behavior reflects ongoing market indecision.
While the cup and handle pattern is not yet fully established, traders are keenly observing NEAR for any indication of a breakout that might validate this classic technical analysis setup. Should NEAR break decisively above the neckline, the next target could potentially reach $1.50, indicating a resurgence of upward momentum. The handle, which may represent a minor pullback, could provide additional entry points for traders looking to capitalize on this movement.
Despite the promising nature of the pattern, it is important to note that market volatility can significantly influence its trajectory. Therefore, investors are advised to monitor price action and key resistance levels closely.
Technical Indicators Show Potential for Recovery
According to data from TradingView, NEAR is exhibiting signs of a robust bullish reversal pattern. After hitting a low of $0.88 in February, the cryptocurrency experienced a significant increase of 19.15%, propelling the price up to $1.3697. Currently, the price is breaking through the upper Bollinger Band and reclaiming the 20- and 50-day exponential moving averages (EMAs), signifying a shift from a downtrend to a growth phase.
While the short-term momentum remains high, it is essential to recognize that the price still lags behind the 200-day EMA, which sits at $1.86, indicating persistent long-term bearish pressure. The price may encounter a cooling-off period near the 100-day EMA at $1.48. Traders should be alert for a breakout that maintains above the $1.25 support level to sustain the trend reversal into 2026.
Momentum Indicators Reflect Strong Bullish Sentiment
The relative strength index (RSI) at 14 is currently at 65.28, indicating a strong increase in bullish momentum. This index is moving well above the signal line, suggesting that buyers are firmly in control of the market. Although the RSI is approaching the overbought territory of 70, there remains some room for further movement before the current price action is deemed technically overbought.
Additionally, the moving average convergence divergence (MACD) is displaying strong bullish signals, with the blue line positioned above the orange line. The histogram reflects a growing column of solid green bars, indicating increasing strength in the recovery phase. However, a flattening histogram could suggest that the bullish momentum is beginning to level off.
