NEAR Dips 42.25% in 24 Hours Amid Market Uncertainty

On SEP 1 2025, NEAR dropped by 42.25% within 24 hours to reach $2.397, NEAR dropped by 643.11% within 7 days, dropped by 42.25% within 1 month, and dropped by 5202.52% within 1 year.

The decline follows a broader wave of volatility across the digital asset sector, with NEAR experiencing sharp sell-offs amid shifting investor sentiment. The token’s recent performance has raised concerns over market fundamentals, particularly in the wake of reduced on-chain activity and a lack of major product updates from the NEAR ecosystem. Investors have shifted their attention to more stable assets, further exacerbating the downward trend.

Technical analysis highlights a bearish trend with key support levels being tested. NEAR’s price has failed to hold above recent moving averages, signaling a lack of immediate buying pressure. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators both reflect a deteriorating short-term outlook, with RSI dropping into oversold territory and MACD showing negative divergence. These patterns suggest a continuation of the downward trajectory in the near term.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate historical price behavior to assess whether a specific set of trading rules could have predicted or managed the recent volatility. This strategy relies on a combination of moving averages and volume signals to identify potential entry and exit points. Historical data would be used to simulate trades based on these signals, providing insight into the potential performance of a rule-based approach during periods of market stress. The strategy emphasizes risk management, including stop-loss triggers and position sizing based on volatility metrics, to mitigate exposure during sharp corrections like the one observed in NEAR’s recent performance.