NEAR Protocol fell nearly 7% on November 6 to $3.74, due to large-scale cryptocurrency liquidations and the decline in U.S. tech stocks, pushing the token to a key support level.

NEAR Protocol Price drops 7% to $3.74 as the total cryptocurrency liquidation across the market exceeds $1 billion.

Despite the approved issuance reduction proposal by NEAR failing to stop further declines, the market continues to face pressure under the widespread selling pressure in the cryptocurrency sector.

Analyst Ali Martinez has identified a TD Sequential buy signal, with targets potentially rebounding to $4.30 and $4.80.

NEAR is currently facing immediate support around $3.60; if this level is lost, it could further decline to around $3.20.

Although analysts pointed out the potential for accumulation opportunities after the recent pullback of NEAR, technical indicators remain bearish.

According to crypto.news market data, NEAR has traded between $3.63 and $4.05 in the past 24 hours, with a trading volume of $671.98 million. The token has fallen by 12% in the past 7 days and by 28% in the past month, with a market value of approximately $4.9 billion.

NEAR Protocol Price Falls Due to Crypto Settlement Exceeding $1 Billion

Following a significant decline in U.S. tech stocks on November 5th, there was a heavy selling pressure in the cryptocurrency market, and the decline of NEAR also intensified as a result. The Nasdaq Composite Index fell by 5.5%, and the S&P 500 Index dropped by 4.3%, due to concerns about artificial intelligence spending and political uncertainties weighing on investor sentiment.

Bitcoin fell by more than 6% during the same period, approaching $75,000, and traders using leverage encountered widespread liquidations. As crypto.news reported earlier, as prices dropped and forced traders to close their positions, over $1 billion in leveraged cryptocurrency positions were liquidated.

Among them, long positions accounted for most of the losses, adding selling pressure to an already weak market. NEAR also fell, but its decline was greater than that of the overall cryptocurrency market; the latter saw a drop of nearly 5% on that day.

Despite weakening recently, NEAR has still risen by 95.91% over the past year. Its current price is significantly lower than the high of nearly $6 in October, and this level has become an important reference for analysts to assess this cycle's correction.

NEAR Supply cuts failed to support a price rebound

Despite the network having approved a proposal to reduce the annual token issuance volume, the downward trend of NEAR continues.

According to the proposal HSP-029, this proposal was approved on November 2nd in the votes at House, of, and Stake. The network plans to reduce the annual maximum issuance rate from 2.5% to 1.6% within 24 months.

The proposal received nearly 99.9% support, and it is expected that compared to the current arrangements, the revised schedule will prevent approximately 11.8 million additional NEAR tokens from entering circulation within two years.

However, this reduction has not yet taken effect. The proposal still requires review by the security committee, a grace period, and adoption by the validators before the network can implement these changes.

A lower issuance volume will reduce token dilution, however, under the proposed arrangement, the staking rewards will also decrease. Therefore, this approval has not led to an immediate price rebound, and traders continue to sell in the midst of market uncertainty.

The price reaction has raised the possibility of "sell-on-fact" trading, where investors reduce their positions after the expected announcement is made. However, the existing transaction data does not prove that the governance vote caused the decline of NEAR.

NEAR Protocol Price analysis indicates that a buying signal may appear.

The crypto analyst known as Ali Martinez, identified as Ali Charts, spotted a buy signal on the NEAR daily chart, indicating that this ongoing pullback may be approaching a turning point.

Martinez pointed out that this indicator previously showed a Sequential Aggressive signal on October 12th, after which NEAR fell from nearly $6 to $3.63, representing a decrease of 39.57%.

At the same time, analysts Micha, van, de, and Poppe believe that the current trading range is becoming increasingly suitable for accumulating positions, but they prefer to look for potential entry points below $3.50.

Another analyst, Giannis Andreou, believes that the range of $3.60 to $3.80 is a critical level that buyers must hold onto, before a sustainable rebound can be expected.

Andreou indicates that if the daily close is above $4.10 to $4.30, it could open up space for prices to reach $4.80 to $5.00. If there is further upward movement, the previous resistance levels of $5.50 to $6.00 will come into view again, and the upward trend line above will point towards around $7 when that price level is reached, depending on the actual price at that time.

NEAR Protocol Price Forecast: Can the $3.60 support level be held?

The NEAR daily chart is still under bearish pressure, having formed a series of lower highs and lower lows since the October high point.

The Moving Average Convergence Divergence (MACD) indicator remains negative, with the MACD line at -0.241, which is lower than the signal line of -0.130. The bar chart shows a value of -0.110, indicating that the selling pressure is still ongoing.

The average true range is 0.431, indicating that although it has fallen from the higher readings in October, the price volatility remains high.

The immediate support level is between $3.60 and $3.73. If it can continue to rebound above $4.00, $4.30 and then $4.50 may become focal points of attention; if there is a stronger breakthrough, it could support the higher targets set by Martinez.

However, Andreou warns that if the daily close falls below $3.60, it will weaken the current support area and expose the range between $3.20 and $3.30, followed by the range between $2.80 and $3.00.

The preferred accumulation area below $3.50 is located between these downward levels, and as the pullback continues, traders are also paying attention to this price range.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.