NEAR Slides 2% While Critical Support Threshold Comes Into Focus

NEAR Protocol Holds Steady After Brief Dip Below Support, Eyes Further Gains

NEAR Protocol’s native token went through notable price swings on Tuesday, briefly dropping to test critical support around the $2.08 level before rebounding modestly.

The AI-centric crypto asset fell about 2% on the day, mirroring the broader weakness across altcoins. The drop came partly in response to a governance proposal introduced by trading firm DWF Labs.

DWF Labs has proposed reducing NEAR’s inflation rate from the current 5% down to 2.5%. While this could help decrease token supply—a potential positive for prices—it has raised concerns that slashing validator rewards might cause network participants to leave, increasing the threat of centralization.

Technical Overview

• NEAR hit its highest price during the 19:00–20:00 UTC period on June 30, but has since been forming lower highs, signaling that sellers remain in control and suggesting further tests of support could come.
• Between 13:06 and 14:05 UTC on July 1, NEAR-USD managed to recover slightly, rising from $2.08 to $2.10, reflecting a 1% gain.
• The price action has traced out an upward-sloping channel, with higher lows and higher highs pointing to emerging bullish momentum.
• Buying strength became evident between 13:25 and 13:33 UTC, when NEAR broke through resistance at $2.08 and established a fresh support level near $2.09.
• A spike in trading activity around 13:40–13:41 UTC caused a quick pullback to $2.08, but buyers swiftly regained control, driving the token to a session high of $2.10 by 14:05.
• This bounce from intraday lows indicates ongoing interest from buyers and suggests NEAR might have room to climb further if momentum persists.