NEAR forms higher low ahead of a potential $2.50 rally

Near Protocol's NEAR token forms a higher low on the daily chart, signaling a potential rally to $2.50, driven by a governance vote to burn protocol fees. However, analysts warn of a possible sell-off after the token reaches $2.40-$2.50, citing weak momentum and broader altcoin weakness.

AI-focused blockchain network, Near Protocol’s native cryptocurrency, NEAR is primed for a surprising move to the upside. Currently ranked 35th on Coingecko in terms of reported market cap, a parabolic rally could catapult NEAR right among the top 20 blockchains. NEAR prints higher low on the chart In a Tuesday X post, crypto trader Michael van de Poppe remarked that NEAR is one of the first few assets to turn up the cooler-than-expected U.S. inflation data. The trader added that NEAR has printed a higher low on the daily chart. If NEAR manages to break through the $2.10 resistance level, then a rally to $2.30 could very well be on the horizon. The following chart shows NEAR recording gains to the tune of around 9.36 percent over the past 24 hours, jumping significantly from the $1.85 price level. To explain, a higher low forms when an asset pulls back, but finds support above its previous low, showing that buyers are stepping in earlier than before. It is considered a bullish signal because it reflects strengthening demand and also marks the continuation of an uptrend. Although NEAR is showing renewed bullish momentum – up approximately 25 percent on a year-to-date basis – the cryptocurrency is still around 90 percent below its all-time high value of $20.44 recorded back in January 2022. However, unlike 4 years ago, the Near Protocol in 2026 has multiple strong real bullish catalysts https://thecoinheadlines.com/crypto/near-token-up-30-percent-as-dynamic-sharding-upgrade-triggers-bullish-rally/article-19853/ behind it. On Wednesday, the House of Steak – Near Protocol’s on-chain governance platform – passed HSP-027 https://thecoinheadlines.com/crypto/near-tokenomics-tightens-as-governance-eliminates-developer-rebate/article-25448/ to redirect all protocol fees for a token burn mechanism. Analyst cautions before potential NEAR sell-off Offering a contrasting take to that shared by Poppe, crypto analyst Wick remarked that NEAR looks ready for a final expansion before a major sell-off. The analyst said that although NEAR may break out of the current range, it will then follow an ABC structure into the $2.40-$2.50 zone. After NEAR hits the $2.40 level, it will show weak momentum and will likely drop all the way down to a price zone between $1.57 to $1.84. The bearish take aligns with crypto entrepreneur Arthur Hayes’ recent thesis that suggested that altcoins are showing overall weakness https://thecoinheadlines.com/crypto/arthur-hayes-sells-entire-hype-and-near-stakes-signals-caution-on-altcoins/article-21086/ in the market.