NEAR Protocol price has pulled back sharply after spending several weeks consolidating between $5 and $5.50. The token climbed rapidly through September before losing momentum around the upper end of the range. This followed the latest pullback to $4.65, putting the focus back on the breakout zone below. Despite the price consolidation, the network activity remains elevated, which keeps up the bullish trajectory.
The daily chart shows NEAR entering a period of consolidation after a powerful rally from below $2 in August to above $5 in September. Price repeatedly tested the $5 to $5.50 region but struggled to establish a sustained move above the range. The decline becomes more significant because it follows a prolonged consolidation rather than an immediate rally.
The trading activity also increased during the recent advance, while open interest climbed toward $50 million before dropping sharply to $38 million. This suggests that some of the leverage built during the rally has now been flushed out. Besides, the funding rate has also turned lower, reducing some of the risk of an excessively crowded long trade. Therefore, the key area to watch currently is the $3.60 to $4 range, which has been acting as a resistance before the price broke higher.
The price correction comes at a time when activity across the NEAR network is improving, with the daily active users surging sharply. The levels have surged from 110,000 in September to nearly 257,000, reversing much of the decline seen earlier in the 90 days.
The rise in network activity provides a stronger fundamental backdrop for the token. If network activity continues rising while price holds above its major support, the current weakness could eventually become a reset rather than a breakdown.
NEAR’s recent rejection is cautious after the sharp rejection, but if buyers can stabilize around $4.60 & reach $5, the bullish prospects remain in place. A move back above $5.50 would strengthen the recovery and put the $6 to $6.20 resistance back in focus. Reaching $8 would require a much stronger recovery than a quick rebound, while reclaiming $6.50 to $7 is imperative.
Crypto markets are taking a hit, and Bitcoin price pressure could deepen if macroeconomic headwinds…
AI could change the cryptography risk equation faster than expected. The warning isn't a call…
More than $200 billion has left the crypto market in the past 48 hours. Bitcoin…
Macro Analyst Jim Willie, known for some of the boldest calls in the XRP community,…
The Bitcoin funding rate on Binance has plunged to approximately -0.00215, its lowest level since…
The XRP lending race is already underway, even though the XRP Ledger’s native lending feature…
