NEAR Protocol Bounces After Testing Key $2.08 Support Level
NEAR Protocol’s token experienced significant volatility on Tuesday, briefly sliding to test a crucial support area around $2.08 before managing to rebound slightly.
The token, central to NEAR’s AI-focused blockchain, lost about 2% on the day, in line with weakness across many altcoins. Part of the pressure came from market reactions to a governance proposal by trading firm DWF Labs.
DWF Labs has put forward a plan to cut NEAR’s inflation rate from 5% to 2.5%. While this move could reduce token supply and potentially support higher prices, concerns have emerged that lowering validator rewards might drive participants away, potentially heightening the risk of network centralization.
Technical Picture
- NEAR reached its daily high between 19:00 and 20:00 UTC on June 30 but has since registered lower highs, suggesting sustained selling pressure and the possibility of further tests of key support levels.
- During the one-hour window from 13:06 to 14:05 UTC on July 1, NEAR-USD saw a modest climb from $2.08 to $2.10—a 1% gain.
- The price action carved out an ascending channel characterized by higher lows and higher highs, hinting at recovering bullish sentiment.
- Momentum picked up between 13:25 and 13:33 UTC as NEAR broke past the $2.08 resistance level and established support around $2.09.
- A burst of trading activity between 13:40 and 13:41 UTC led to a brief drop back to $2.08, but strong buying interest quickly pushed the price up again, with NEAR hitting a session high of $2.10 by 14:05.
- This rebound from earlier lows suggests solid demand remains in the market, raising the possibility of further upward movement.
