NEAR Protocol (NEAR) remains under pressure on Tuesday, trading below the $4 mark after suffering a 7% decline in the last 24 hours.
The token has now recorded three consecutive weeks of losses, with technical indicators suggesting that sellers are still firmly in control.
The weakness comes despite a significant development in NEAR’s tokenomics.
On Monday, the network’s decentralized governance body, House of Stake, approved a proposal to reduce annual token issuance, a move designed to slow supply growth and improve the cryptocurrency’s long-term economic structure.
Meanwhile, NEAR’s derivatives market is showing signs of weakening positioning, with falling futures open interest suggesting that traders are reducing exposure as prices continue to decline.
NEAR governance approves proposal to reduce token inflation
NEAR Protocol is moving toward a lower token issuance rate after its decentralized governance body, House of Stake, approved proposal HSP-029 on Monday.
The proposal outlines a gradual reduction in the network’s maximum annual token issuance from 2.5% to 1.6% over 24 months.
NEW PROPOSAL PASSED
House of Stake, NEAR’s decentralized onchain governance body, has voted to lower NEAR’s maximum annual issuance from 2.5% to 1.6%, phased in over 24 months.
This is how NEAR’s economics evolve transparently and programmatically: token holders put a core… pic.twitter.com/4rXUk8RKcL
— NEAR Protocol (@NEARProtocol) November 2, 2026
Rather than introducing an immediate change, the adjustment will take place in stages, giving the network and its validators time to adapt to the new issuance structure.
Before implementation, the proposal must pass through a Security Council review, followed by a 90-day grace period and a protocol upgrade involving validators.
Once implemented, the changes will reduce the rate at which new NEAR tokens enter circulation, potentially easing long-term supply pressure.
Lower issuance can support a cryptocurrency’s tokenomics by slowing the creation of new tokens. However, it does not automatically translate into higher prices, particularly when broader market sentiment remains weak.
The spot price decline aligns with a dip in NEAR’s derivatives market activity. According to CoinGlass data, NEAR futures Open Interest (OI) dropped to $1.01 billion on Tuesday, down by 2.75% in the last 24 hours.
The decline is particularly notable because Open Interest had been falling since reaching a high on October 25.
With NEAR’s price continuing to weaken, the decrease in OI suggests that traders are reducing their positions due to the current market volatility.
NEAR price forecast: Bears target $3.41 as technical indicators weaken
NEAR trades around $3.762 on Tuesday, with its daily chart showing a sustained bearish trend.
The cryptocurrency remains below its 50-period Exponential Moving Average (EMA) at $4.3677 and its 200-period EMA at $4.5235.
Both indicators are positioned above the current market price, suggesting that sellers continue to dominate the short-term trend.
On the four-hour chart, NEAR remains below its 50-period EMA near $4.3677 and 200-period EMA around $4.5235.
The shorter moving average has slipped beneath the longer one, reinforcing the bearish short-term outlook.
The daily chart presents a more mixed picture. NEAR remains below its 50-day EMA, but the 200-day EMA is substantially lower, suggesting the recent selling pressure has not yet produced a comparable long-term bearish crossover.
NEAR is also trading within a descending channel, a technical pattern formed by two downward-sloping parallel trendlines.
The token is approaching the descending channel’s lower boundary near $3.7303, an important short-term support level. A decisive break below this area could expose the September 19 low around $3.40.
A decisive break below this area could expose the September 19 low at $3.410, potentially extending the recent selloff.
Momentum indicators also favor the bears. The Relative Strength Index (RSI) on the daily chart stands near 38, approaching oversold territory.
While this indicates intense selling pressure, it also raises the possibility of a short-term relief bounce if buyers begin entering the market.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains firmly in negative territory, reinforcing the view that bearish momentum is still dominant.
On the upside, a rebound from the descending channel’s lower boundary could see NEAR retest $3.9160, a former support level that has now turned into resistance.
A stronger recovery could push the token toward $4.3010, although buyers would need to overcome persistent selling pressure to sustain such a move.
Despite the positive governance development and renewed futures activity, NEAR’s immediate technical outlook remains bearish.
Unless the token reclaims its nearby resistance levels, the risk of another decline toward $3.410 remains high.
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