NEAR Token Declines Amid Market Uncertainty and Governance Concerns
NEAR Protocol (NEAR) fell 2% over the past 24 hours, declining from $2.14 to $2.09, as volatility increases across the altcoin market. The price action reveals bearish momentum, though short-term recovery signals are emerging.
NEAR’s trading range spanned from a high of $2.19 to a low of $2.08, creating a 5% volatility band.
Key Support Zone at $2.08-$2.10 Under Pressure
Technical indicators show a significant support level forming between $2.08 and $2.10, with multiple rebounds occurring in this zone.
During a 7-hour session, NEAR consistently bounced from $2.08 despite ongoing selling pressure, backed by above-average volume.
This support band will be critical to monitor in the coming days, as a sustained break below $2.08 could open the door for further declines.
Market Reaction to Inflation Proposal by DWF Labs
The current dip in NEAR’s price also reflects investor uncertainty surrounding a governance proposal introduced by DWF Labs, which suggests cutting NEAR’s inflation rate from 5% to 2.5%.
While reduced inflation could lead to token scarcity and potential bullish outcomes, critics argue it may discourage validators by reducing staking rewards, possibly weakening network decentralization.
This debate is contributing to short-term volatility as investors weigh the long-term impact of the proposed change.
Short-Term Rebound Suggests Bullish Potential
Despite the downward trend, NEAR-USD demonstrated a strong recovery in the final trading hour:
- From 13:06 to 14:05 on July 1, NEAR rose from $2.08 to $2.10, marking a 1% gain
- Higher highs and higher lows formed an upward channel
- A volume spike at 13:40 led to a brief pullback to $2.08, followed by a swift move to the session high of $2.10
The rebound confirms underlying demand and supports the possibility of a short-term bullish continuation.
Support Holds, But Risks Remain
NEAR Protocol remains at a technical crossroads, with $2.08 as the critical support and $2.10-$2.14 as immediate resistance. The market’s response to both macro pressure and on-chain governance will likely drive near-term price action.
Investors should watch the $2.08 support level closely for signs of either breakdown or a bounce-back continuation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.