Date: Mon, Dec 23, 2024, 06:23 PM GMT

The cryptocurrency market has been under pressure over the past week, with sharp corrections shaking investor sentiment. Bitcoin (BTC) experienced a notable dip since December 17, hitting a low of $92,000 and now trading near $93,000. Amid this market turbulence, Near Protocol (NEAR), one of a top AI token, has also faced a significant downturn, losing over 24% in value in the last seven days and currently trading at $5.11.

Source: Coinmarketcap

Retesting a Major Breakout

Near Protocol (NEAR) 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. This marked the end of an extended period of consolidation and brought renewed optimism for the token's future.

Near Protocol (NEAR) Chart 1D/ Coinsprobe

However, with the ongoing market correction, NEAR is now retesting its breakout level near the $5 support zone—a pivotal point for the token’s trajectory. If NEAR holds this support and rebounds, it could rally back toward the $8.24 resistance zone, presenting a compelling recovery opportunity for investors.

For those eyeing long-term potential, NEAR’s midterm target of $20—a staggering 300% increase from its current price—remains in play.

Is a Bullish Rally on the Horizon?

The current retest of NEAR’s breakout level presents a critical juncture. A successful reversal here could ignite a bullish rally, especially as the broader cryptocurrency market stabilizes.

Bitcoin's dominance, currently at 58.10%, will be a key factor influencing the performance of altcoins like NEAR. A sustained upward movement in Bitcoin’s price could pave the way for a recovery in altcoins, providing the momentum needed for NEAR to reach higher levels.

Conclusion

Near Protocol’s retest of its long-term downtrend breakout line is a significant moment for the token. If the support level holds and bullish sentiment returns, NEAR could experience a strong rally in the weeks ahead. However, market participants should remain cautious and consider the broader cryptocurrency market dynamics, particularly Bitcoin's influence, before making investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making investment decisions in cryptocurrencies.

Also Read: Top AI Tokens RENDER and TAO Holds Key Support Levels Amid Major Correction: Is A Bounceback Ahead?