At the time of writing, Near Protocol’s native token NEAR was attempting to recover after a sharp sell-off that erased more than 10% of its value in just 24 hours.
Despite the correction, however, the token has shown encouraging signs of strength on lower timeframes. On the hourly chart, for instance, the altcoin’s price action reacted positively after hitting the $4.10–$4.70 demand zone. This has allowed buyers to reclaim short-term momentum and shift the immediate market structure in their favor.
In fact, the rebound has renewed optimism among network bulls who are now targeting the most recent swing high at $5.6. Hence, the question: Will the momentum materialise or will sellers have their say?
Let’s dig deeper and see…
An aggressive return from retail traders?
A look at derivatives data revealed a sharp hike in retail participation. A growing number of smaller buy orders have been entering the market around press time price levels. This suggested that retail traders probably view the recent correction as a buying opportunity.
This influx of buyers has helped stabilize price action and improve short-term sentiment.
However, it’s still worth noting that retail-driven rallies can also become vulnerable if momentum fades or larger market participants begin to take profits.
Volume bubble maps signal rising volatility
While buying activity has increased, volume data also hinted at elevated trading activity. According to the network’s Volume Bubble Maps data, both the Spot and Futures markets have been experiencing overheated trading conditions.
In the past, such spikes in activity have often preceded significant price swings as liquidity built up and traders competed for positioning. The same turn of events could be in store for NEAR.
Can NEAR reverse and target the next resistance at $5.6?
On the daily chart, the $4.10–$4.70 demand zone remains the key support area for bulls.
If buyers continue to defend this region and absorb selling pressure, NEAR could build enough momentum for a broader recovery. On the other hand, failure to hold the demand zone could invite another wave of selling and extend the altcoin’s recent correction.
Finally, it’s worth pointing out that network bulls have been making their presence felt as the altcoin’s price action gathered some momentum on the hourly chart.
The unmitigated liquidity cluster worth $48.12 million lying at the $5.6-resistance level highlighted it as a high probability target for the Near Protocol’s bulls.
Final Summary
- NEAR fell by more than 10% in the last 24 hours before stabilizing within the $4.10–$4.70 demand zone.
- Network’s retail participation surged as trading activity overheated across both Spot and Futures markets.