- Near Protocol is testing key resistance at $3.55, with a breakout targeting $4.00.
- Social volume remains low, limiting potential momentum despite bullish technical indicators.
Near Protocol [NEAR] has been moving within a falling wedge pattern for several months, and the coin is now testing key resistance levels. At press time, NEAR was trading at $3.25, reflecting a 5.03% increase.
As it nears the upper trendline of the wedge, the question on many traders’ minds is whether the coin will break out above resistance or fail to hold its momentum.
This technical setup could trigger a major rally, but will it succeed in breaking the wedge, or will it face a pullback?
Will NEAR break through resistance or stall?
NEAR’s price action is at a critical juncture, testing an important level around $3.25. The coin is approaching the upper trendline of its falling wedge, with the next key resistance near $3.55.
If NEAR successfully breaks above this resistance, the next target would be around $4.00.
However, if the price fails to break out, it may retreat to the support zone at $2.97. A failure to break the resistance could lead to a period of consolidation or even a downward move, which would keep traders cautious.
Source: TradingView
Social buzz or silence? Volume still low
Despite the rising price, the social volume remains lackluster. At press time, the Social Volume stood at just 1, and the Social Dominance was only 0.024655%.
These figures suggest that the market is not buzzing with attention around NEAR at this moment.
The lack of significant social influence points to minimal trader excitement, which could limit the overall momentum for NEAR.
Without a broader social conversation, its potential for explosive growth might remain muted in the short term.
Source: Santiment
NEAR Open Interest and Liquidation: A volatile future?
Open Interest has risen by 0.23%, and stood at $151 million, indicating that traders are actively positioning for potential price moves.
The Liquidation chart also reveals a balanced market, with an equal distribution between long and short positions.
This balance creates an environment ripe for volatility, as any breakout or breakdown could trigger substantial liquidations.
Therefore, a breakout above the wedge resistance could result in significant price movement, potentially forcing liquidations to fuel further volatility.
Source: Coinglass
Will NEAR break out or retreat?
Near Protocol is approaching a crucial breakout point, and the technical setup suggests a high likelihood of an upward move.
However, the low social volume and minimal dominance could dampen the momentum in the short term.
If it manages to break the resistance at $3.55, a rally to $4.00 is certainly possible. However, without more significant market attention and social buzz, the breakout could lack the momentum needed to sustain a major rally.
