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.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The US Federal Reserve concluded its two-day interest rate meeting today, announcing it is holding…
As the crypto markets and Bitcoin are stabilising ahead of the FED rate decision, the…
OKX and Intercontinental Exchange (ICE) are facing growing opposition to their planned tokenized stock exchange,…
Ripple CEO Brad Garlinghouse said gloomy narratives about crypto keep surfacing, but the industry has…
Stellantis stock jumped about 12% in early New York trading on Wednesday after the Jeep…
Ripple CEO Brad Garlinghouse said the global economy no longer runs on a nine-to-five schedule,…
