NEAR Protocol Token Drops 2% Amid Inflation Debate

NEAR Protocol, a blockchain platform focused on AI, experienced a 2% decline in its token value over the past 24 hours, from June 30, 15:00 to July 1, 14:00. The token's price dropped from $2.14 to $2.09, reflecting broader weakness in the altcoin market and a negative response to a governance proposal by trading firm DWF Labs. DWF Labs proposed to reduce NEAR's inflation rate from 5% to 2.5%, which, while potentially bullish for token scarcity, raised concerns about network validators switching to other platforms due to reduced rewards, thereby impacting decentralization.

The price action of NEAR-USD showed clear bearish momentum, with the overall range spanning from a high of $2.19 to a low of $2.08, creating a volatility band of $0.11 (5%). A significant support level has formed around $2.08-$2.10, confirmed by multiple bounces with above-average volume, particularly during a 7-hour session where the price recovered from $2.08 despite heavy selling pressure. This recovery suggests strong underlying demand and potential continuation of the uptrend.

Technical analysis indicates that the 19:00-20:00 period on June 30th marked the peak with the highest price point, followed by consistent lower highs, suggesting continued selling pressure that could test the established support zone in the near term. However, in the last 60 minutes from 1 July 13:06 to 14:05, NEAR-USD demonstrated a strong bullish trend, rising from $2.08 to $2.10, representing a 1% gain. The price action formed a clear upward channel with higher lows and higher highs, particularly accelerating between 13:25-13:33 when the price broke above the $2.08 resistance and quickly established support at $2.09. A notable volume spike occurred at 13:40-13:41, creating a brief pullback to $2.08 before buyers stepped in, pushing the price to the session high of $2.10 by 14:05. This recovery from the mid-session dip confirms strong underlying demand and suggests potential continuation of the uptrend.