NEAR Protocol is drawing renewed market attention as a potential bullish reversal pattern takes shape on its daily chart. The token powers a proof-of-stake layer-1 blockchain that uses sharding technology to scale transaction throughput while keeping fees low.

NEAR is currently trading around $1.88, with a 24-hour trading volume of approximately $1.02 billion and a market capitalization near $2.46 billion, according to CoinGecko. The token has slipped 0.63% over the past 24 hours, while its market dominance stands at about 0.09%.

NEAR Protocol Faces Critical $3.40 Resistance

Crypto analyst Crypto With Gopal has identified a possible inverted head-and-shoulders reversal pattern on the NEAR chart, shared in a post on X alongside a TradingView chart. The formation consists of a left shoulder, a deep trough acting as the head, and another trough as the right shoulder, with the neckline sitting close to the $3.40 level. The neckline serves as the main resistance area.

The inverted head-and-shoulders is one of the most widely recognized reversal formations in technical analysis. It typically emerges after a downtrend, and a decisive move above the neckline is the textbook trigger for a change in trend direction. In NEAR's case, the neckline sits roughly 80% above the token's current price, underscoring how far the setup remains from confirmation.

Under the pattern's framework, a move past $3.40 would complete the inverted head-and-shoulders formation and signal a broader recovery trend. In the event of a successful breakout, the analyst expects NEAR to climb toward the $5.50 level, a substantial advance compared with its current price.

The setup follows a previous move in which NEAR recovered from below the $1.54 level to above $1.68. Price action around $1.68 then showed a bearish breakout move, accompanied by selling pressure, volume, and a momentum candle.

Beyond the identified chart pattern, the 0.618 Fibonacci retracement — a level derived from the Fibonacci number sequence that traders widely use to map potential pullback and entry zones — is highlighted as an interesting area to enter a trade. The proposed pattern carries a risk-to-reward ratio of 2.5 to 1; however, the analyst notes that the analysis is not a guarantee the move will happen.

Breakout or Rejection Could Set Next Trend

The $3.40 neckline is the key level in this setup at the moment. A breakout accompanied by volume would confirm that buyers have taken control of the market. Conversely, a failure of price to move above the neckline would mean the formation has failed and NEAR may move lower again. A common practice with this pattern is to watch whether price holds above the neckline on a subsequent retest, which traders use to filter out false breakouts.

For NEAR holders and interested buyers, the token is at a crucial technical point. The $1.53 area represents an important reference from the recent recovery, $3.40 is the major confirmation level, and $5.50 is the projected target if the pattern succeeds. Until a clear breakout or breakdown occurs, NEAR could remain range-bound.

Beyond the chart formation, broader cryptocurrency market conditions will also influence NEAR's next move. Bitcoin's direction, overall liquidity, and risk appetite across altcoins could determine whether NEAR has enough momentum to challenge higher resistance levels. Investors should therefore treat the pattern as a potential setup rather than a confirmed reversal.

This article contains market analysis and price predictions, which are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.