NEAR is at the upper level of a descending channel as outlined below; it is likely to burst.
A confirmed breakout can lead NEAR to the $4.20 level, which is 60% higher than the current price.
The key resistance is located at $2.52, and the near-term support is at $2.23.
Due to its technical and fundamental fundamentals, NEAR Protocol (NEAR) is likely to experience an upside breakout soon after staying in a range for a rather long time on the daily (1D) time frame chart in the form of a descending channel. The asset, currently ranked #43 by market capitalization, is trading at $2.51, reflecting an 8.6% daily increase and 5.9% gain against Bitcoin (BTC). Analysts are now observing if this breakout could signal a reversal to sustain the upside in the near term.
Price Action and Technical Structure
Since the beginning of the fourth quarter in 2024, NEAR has been within a descending channel. The pattern, marked by lower highs and lower lows, indicates persistent bearish sentiment over the past several months. Nevertheless, price action in the beginning of May 2025 may bounce back as NEAR is getting to the upper frontier of the descending channel.
https://twitter.com/ZAYKCharts/status/1920350940831289650
A breakout above this trendline can signal an end to the long-term bearish trend.The projection for NEAR, if the bulls break above it, is around $4.20, which is over 60 percent up from today’s levels.
Key Levels and Market Indicators
NEAR is currently testing a resistance level near $2.52. A successful close above this mark may trigger additional buying interest. On the downside, immediate support lies at $2.23, a level that has held up during previous pullbacks. The 24-hour trading range reflects increased volatility between $2.23 and $2.52, signaling heightened market activity.
Despite the technical setup, the broader market trend and sentiment surrounding Layer 1 blockchain projects like NEAR continue to play a critical role. There is a possibility that NEAR’s upward trend can be explained by the rising interest in scalable smart contract platforms and the overall revival in altcoins in mid-May.
NEAR Broader Context and Outlook
The current setup in NEAR's chart comes amid an environment where altcoins are attempting to recover following a prolonged period of underperformance. The value seems to be brewing once again and investors are slowly getting more interested and are flowing back into the digital asset market.
As it stands, the bullish view towards NEAR is optimistic when measured against the current price action and the general market sentiment that is fixed on waiting for volume support and daily candlestick breakout and close above the mentioned resistance. If the price failed to break and hold above the channel, then it could just continue to remain range bound within the pattern.
Therefore, for the short-term perspective of NEAR, its future will only hold if the buyers can regain control of the market and therefore break the long-term bearish market. The future sessions may signal the direction of the asset in the subsequent weeks effectively.
