NEAR Protocol Forecast: $3.73 Support at Risk as NEAR Extends 10% Daily Drop

NEAR Protocol’s token remained under pressure on Tuesday, trading below $4 after losing about 10% in the previous session and recording three consecutive weeks of declines. The weakness comes despite a significant development in the network’s token economics: its House of Stake governance body approved a plan to reduce maximum annual issuance from 2.5% to 1.6%. However, the decision has not yet taken effect, while technical indicators continue to point to strong selling pressure.

NEAR approves a 36% issuance cut

The House of Stake approved proposal HSP-029 on Monday, November 2. The measure will gradually lower NEAR’s maximum annual token issuance from 2.5% to 1.6% over 24 months, representing a 36% reduction in the issuance ceiling.

The change is designed to slow the creation of new tokens and reduce long-term dilution for existing holders. Under the proposal, the current allocation of newly issued tokens remains unchanged: 90% goes to staking participants and 10% to the protocol treasury. The adjustment changes the issuance rate, not the distribution structure.

The approval is an important step, but it does not immediately change the network’s monetary policy. The proposal requires a Security Council review, a grace period of approximately 90 days and a protocol upgrade adopted by validators. The reduction would then take effect progressively, with the target rate reached after two years. The official proposal sets out this implementation process.

Futures activity points to volatility

Despite the positive tokenomics decision, derivatives activity suggests traders are repositioning as NEAR declines. CoinGlass data cited in the supplied market snapshot showed futures open interest rising to 266.81 million NEAR tokens on Tuesday, from 246.27 million a day earlier.

That represents an increase of roughly 4.3%, indicating that outstanding futures positions expanded during the price decline. Open interest measures the number of active derivatives contracts and can help identify changes in market participation. It does not, by itself, reveal whether traders are opening bullish or bearish positions.

The reading also remains below the October 25 peak of 302.69 million NEAR. The combination of rising open interest and falling spot prices suggests that leverage is returning while uncertainty remains elevated.

NEAR price forecast: $3.73 in focus

NEAR traded around $3.8270 in the supplied Tuesday snapshot, below its four-hour 50-period and 200-period exponential moving averages (EMAs), at $4.3677 and $4.5235, respectively. The shorter-term average has also crossed below the longer-term average, reinforcing the bearish technical structure.

Price action remains confined within a descending channel, with the lower boundary near $3.7303 providing the next immediate area of support. A sustained break below it could expose horizontal support at $3.4030, corresponding to the September 19 low.

Momentum indicators reinforce the downside risk. The four-hour Relative Strength Index (RSI) near 26 signals oversold conditions, while the Moving Average Convergence Divergence (MACD) remains deeply negative. Oversold readings can precede a rebound, but they do not confirm that a price bottom has formed.

Key levels to monitor:

• Immediate support: $3.7303
• Next downside target: $3.4030
• Initial resistance: $3.9160
• Higher resistance: $4.3010

A recovery above $3.9160 could provide short-term relief, while a move toward $4.3010 would face another technical hurdle.

Conclusion

NEAR’s planned issuance reduction improves its longer-term supply outlook, but the governance approval has yet to become an implemented protocol change. For now, weakening price momentum and expanding futures positions leave $3.7303 as the critical near-term level. A break below it would increase the risk of a decline toward $3.4030, while a sustained recovery above $3.9160 would be an early sign that selling pressure is easing.