NEAR Dips 2% as Price Challenges Major Support Level

NEAR Protocol Holds Firm After Testing Key Support, Eyes Further Upside

NEAR Protocol’s native token saw sharp price swings on Tuesday, momentarily dipping to challenge a critical support zone around $2.08 before bouncing back slightly.

The AI-focused cryptocurrency dropped around 2% for the day, reflecting broader softness in altcoin markets. Part of the decline was linked to market reactions following a new governance proposal from trading firm DWF Labs.

DWF Labs has suggested cutting NEAR’s inflation rate from 5% to 2.5%. While a lower inflation rate could reduce future token supply—potentially a bullish factor for prices—there’s concern that slashing rewards for network validators might drive participants away, raising the risk of increased centralization.

Technical Snapshot

NEAR hit its intraday high between 19:00 and 20:00 UTC on June 30 but has since posted lower highs, signaling persistent selling pressure and potential retests of support zones.
During the hour from 13:06 to 14:05 UTC on July 1, NEAR-USD recovered modestly, rising from $2.08 to $2.10—a 1% increase.
The price action has formed an upward-sloping channel with higher highs and higher lows, suggesting emerging bullish momentum.
Momentum picked up between 13:25 and 13:33 UTC when NEAR broke through resistance at $2.08 and quickly found new support at $2.09.
A burst of trading activity at 13:40–13:41 UTC triggered a brief dip back to $2.08, but buyers swiftly regained control, sending the price to a session peak of $2.10 by 14:05.
This rebound from the mid-session low highlights underlying buying interest and hints at potential for continued gains.