NEAR down 10%: Risk analysis and outlook for traders

NEAR Protocol (NEAR) continues to face downward pressure over the past 24 hours, with the altcoin’s price dropping 10% amid increased volatility across the entire cryptocurrency market.

However, the decline has not overshadowed positive signals from NEAR’s on-chain activities.

A notable highlight is that NEAR Intent has just surpassed an important milestone, recording a total transaction volume of $5 billion – clear evidence that the NEAR ecosystem remains vibrant despite the recent market correction.

NEAR market activity bucks the price decline

NEAR’s user base is expanding rapidly. Recently, the number of monthly active users on Layer-1 blockchains has seen an impressive increase, with NEAR accounting for about 17% of all active users across all L1 networks.

Currently, NEAR ranks third among Layer-1 tokens by user count, trailing only Solana and BNB. The network has attracted 41.8 million users, while BNB leads with 56.5 million and Solana closely follows with 45.4 million users.

This growth trend clearly reflects increasing protocol adoption, even as overall market sentiment becomes more cautious. It shows that NEAR is gradually establishing a strong position within the Layer-1 blockchain ecosystem.

NguSource: Token Terminal## Long-term price structure suggests possible reversal

Conversely, NEAR’s short-term price reaction seems to be distinctly separated from its strong on-chain appeal. Despite positive on-chain metrics, the price action has yet to reflect this, with bears still in control.

The sharp daily drop may reflect a “risk-off” sentiment among traders, prioritizing position protection over fundamentals, especially amid low market liquidity and heightened volatility.

NguSource: TradingViewOn the weekly chart, NEAR has maintained a consolidation period since March, fluctuating between $1.82–$3.20. At the time of writing, the price is approaching the $1.82 support area following the recent decline. However, this support level may hold thanks to positive signals from on-chain activity, offering hope for bullish investors.

SN_Nour