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Trading activity on NEAR Protocol has sharply decreased, with major exchanges seeing a 36% decline in 24-hour spot volume. Spot trading volume has decreased to about $39 million, according to CoinGlass data, but futures volume is still significantly higher at about $302 million. The drop occurs as NEAR has been trading sideways for a few weeks and is having trouble gaining new momentum.
Near surges above $3
The decline in spot activity indicates that, in the wake of the explosive rally that propelled NEAR above $3 earlier this year, many traders may have moved to the sidelines. Since then, speculative interest has cooled and volatility has gradually decreased as the asset has entered a protracted consolidation phase.
This pattern is supported by exchange-specific data. Over the last 24 hours, spot volume on Binance, the biggest market for NEAR, has decreased by more than 30%, while drops of more than 38% have been reported by OKX and Bybit. KuCoin saw an even more dramatic decline of almost 57%, suggesting that the slowdown is not limited to a single venue. It is worth noting that, despite lower spot demand, derivatives positioning remains generally positive.
Major exchanges' long/short ratios are still favoring bulls, and the top traders on Binance continue to hold more long than short positions. Additionally, liquidation data indicates that long positions accounted for the majority of forced closures over the last 24 hours, indicating that bullish traders absorbed most of the recent volatility rather than a wave of aggressive short selling.
Technically speaking, NEAR is at a critical juncture. Right now, the asset is trading close to $1.89, which is just above its 200-day moving average. Between buyers and sellers, this level has become a significant battleground. The price is still below the 50-day moving average, but it is still above longer-term support, which keeps the overall structure from turning clearly bearish.
Momentum isn't balanced
The picture presented by momentum indicators is neutral. With neither buyers nor sellers having a distinct advantage, the Relative Strength Index is at about 48, indicating balanced market conditions. In line with the general decline in trading activity, volume has also decreased throughout July.
The psychological $2 level, where the 50-day moving average likewise converges, continues to be the immediate resistance. Bullish momentum could be revived and sidelined capital could be drawn back into the market with a strong move above that area. On the other hand, NEAR may be exposed to a deeper retracement towards the $1.70-$1.75 range if support around the 200-day moving average is lost.
As of right now, the decline in trading volume appears to be more indicative of waning speculative activity than of outright panic selling. NEAR is likely to remain stuck in its current consolidation phase unless volume starts to rise alongside a breakout above key resistance.
Dan Burgin
U.Today Editorial Team
