NEAR May Be Preparing for a Breakout Amid Rising Momentum and Bullish Chart Patterns

• NEAR Protocol is on the verge of a pivotal breakout, driven by technical patterns and increasing retail interest.

• Recent market trends reflect a significant bullish momentum, highlighted by short liquidations and a resurgence in market activity.

• “Short sellers have started facing significant pressure as the price climbs, marking a crucial turning point for NEAR,” according to data from Coinglass.

NEAR Protocol may be primed for a breakout with a bullish chart pattern and heightened retail interest, signaling a potential rally towards $2.43.

Can the inverse head-and-shoulders pattern drive a breakout?

NEAR’s chart indicated a well-defined inverse head-and-shoulders formation—often signaling a bullish reversal. The neckline is established just above $2.14, with crucial support levels positioned at $2.06 and $1.95. A breakout above this neckline could propel prices up to a projected target of $2.43, translating to a potential increase of 14.84%.

This technical setup is characterized by its symmetry, with clearly defined shoulders and a prominent low enhancing its reliability. Despite this positive outlook, it is important to approach the market with caution—strong volume confirmation will be essential for sustaining any potential rally.

Source: TradingView

Short liquidations mount as bearish bets backfire

Recent liquidation data underscores the growing pressure on short sellers within the NEAR market. Over the past sessions, the total short liquidations reached $31.42k, significantly outstripping long liquidations that stood at just $10.46k. The Binance exchange accounted for the majority, with $21.25k in short liquidations, reflecting a broader misjudgment among traders about market direction.

Furthermore, exchanges like Bybit and OKX have also reported notable short-side liquidations, indicating that many bearish positions are being squeezed as prices continue their ascent. This disproportionate liquidation scenario serves as a hidden catalyst for upward momentum, with forced exits from shorts leading to sudden price spikes.

Source: Coinglass

Rising social volume hints at growing interest

Increased social media activity surrounding NEAR indicates a resurgence in visibility amongst retail traders. Recent metrics show social volume climbing to 6, with dominance at 0.039%, marking the highest engagement in recent weeks.

While these metrics remain modest, they reflect a noteworthy shift in sentiment that could accelerate if the price action affirms the bullish setup. Should a breakout occur, amplified discussions across social channels may drive additional demand, inciting FOMO among sidelined investors.

Source: Santiment

Developer activity cools down, but remains strong

On-chain development metrics reveal a slight decline in builder activity, with NEAR’s development activity score dropping from a high of 27.68 to 19.48 as of April 12. Although this dip may suggest a temporary pause after a series of upgrades, it does not yet indicate a reversal in trend.

Developers continue to actively engage, and NEAR persists in outperforming many of its peers in terms of code-level contributions. A rebound in development activity could further strengthen investor confidence regarding NEAR’s long-term viability.

Source: Santiment

Could NEAR be gearing up for its next major rally?

NEAR Protocol is developing a bullish structure that may pave the way for a substantial breakout. The inverse head-and-shoulders pattern indicates a possible 15% price movement, bolstered by rising short-side liquidations and increased social engagement signaling heightened momentum.

However, the critical test lies in overcoming the $2.14 neckline with solid volume. A successful breakout, coupled with renewed developer activity and growing interest, could set NEAR on a trajectory towards $2.40.