NEAR Protocol (NEAR) is surging with impressive momentum, boasting a 29% increase in the past week alone. As technical indicators suggest, this upward movement could continue, with a potential target of $10 in the mid-term. Let’s explore why NEAR is primed for a rally based on its recent price action and breakout pattern.

Bullish Momentum and Technical Structure

NEAR’s performance over the past month has been nothing short of impressive, with a 34.6% gain over the past 14 days and a 7.4% rise in the last month. Despite these gains, the token remains 73.9% below its all-time high of $20.44 set in January 2022. However, the current technical structure shows strong bullish signs.

The breakout of an eight-month descending channel has set the stage for potential further gains. The breakout, followed by a retest, has confirmed a bullish pennant formation, a pattern that often leads to sustained upward momentum. According to analysts, this setup signals the likelihood of a continuation towards the $10 target.

Historical Context and Similarities to Bitcoin and XRP

A crucial comparison has been made between NEAR’s current pattern and similar breakout structures observed in Bitcoin (BTC) and XRP. Both of these major cryptocurrencies saw substantial rallies after completing comparable pennant breakouts and testing upper-range support levels.

The similarity in price action is notable. NEAR has touched the top of its channel before retreating to a higher support zone, a move that has been validated by multiple reversals off the trend’s top. This type of pattern, seen in BTC and XRP, often precedes a breakout and continued upward momentum.

Volume Profiles and Key Resistance Levels

As NEAR continues to trade above the pennant formation, analysts are closely monitoring volume profiles to confirm the strength of the rally. Increased volume could signal that the breakout is genuine and that the $10 target is achievable.

However, resistance levels along the way could act as temporary obstacles. Traders and analysts are keeping an eye on key resistance points that may test the strength of the rally before a potential breakout toward $10.

A Well-Defined Trade Setup

For traders, the current technical structure offers a well-defined framework for managing positions. Clear entry points and risk parameters are in place, making this an attractive setup for those looking to capitalize on NEAR’s bullish potential.

Conclusion

With a clear technical setup and strong performance metrics, NEAR Protocol looks poised for continued price appreciation. While challenges may arise at key resistance levels, the current bullish pennant breakout suggests that NEAR could reach its $10 target, especially if it follows the successful patterns established by Bitcoin and XRP.

As always, traders should proceed with caution and conduct their own analysis, as the crypto market is highly volatile, and price predictions are not guaranteed.