NEAR Protocol price eyes $5 target on breakout above $3.40

NEAR price is gaining steam with a 17% weekly rally as it eyes $5 target based on a bullish pattern.

NEAR Protocol (NEAR) price is up 10% in the past 24 hours and 17% over the past week, currently trading at $3 as the price extends its recovery from the $1.80 low hit around June 25.

That $1.80 low ended a steep downtrend that began in mid-May and also marked the second low of a huge double bottom pattern, with the first one formed in early April and a neckline established around $3.40, marking the next major resistance.

NEAR price is steadily approaching this resistance, supported by strong bullish momentum. NEAR has remained above the 20-day EMA throughout July, with daily candles growing longer, indicating building buying pressure.

Before testing the $3.40 neckline resistance, NEAR price faces a minor hurdle at $3.20, a previous swing high from within the recent downtrend. If the price breaks above $3.40, it would confirm the double bottom pattern and suggest a potential target around $5.00, based on the measured move. On the downside, the key support now sits at $2.70, a former resistance level.

NEAR breakout price action is unfolding amid a wave of bullish developments in the Near Protocol’s ecosystem. Most notably, the community has opened a validator vote to reduce NEAR’s annual token inflation from 5% to 2.5%, designed to incentivize long-term holding and reduce sell pressure.

If the proposal passes with the required majority (66.67%), core developers will include the new inflation logic in the next protocol upgrade release. The change is expected to be activated in the network by late Q3 2025. This reduction in inflation effectively limits new NEAR token supply, creating a more deflationary environment that can support sustained upward price pressure as demand grows.

Adding to the bullish outlook, Bitwise’s NEAR Staking ETP has recently been listed on Germany’s Xetra exchange, giving global investors exposure to NEAR with integrated staking benefits without needing to manage keys or wallets.