NEAR fell sharply during Thursday's trading session, dropping nearly 17% at one point, erasing earlier gains and approaching the support zone around $2.20. This decline occurred amid a general correction in the crypto market, with large on-chain transactions and a contraction in derivatives positions further amplifying market caution.
On-chain transfers attract attention
One point of market focus is the movement of wallets associated with Arthur Hayes. On-chain tracking data shows that approximately 247,000 HYPE tokens were transferred into the relevant address, equivalent to about $18 million at the time, and NEAR transfers were also involved.
The report noted that this move came after Hayes had previously hinted at exiting the relevant positions. Although the transfer itself does not equate to a complete sell-off, given the already weak market, the unusual activity at the relevant address is still considered a source of short-term pressure.
Open interest fell by more than 20%
Derivatives data also shows that market risk appetite is declining. NEAR futures trading volume rose above $2.8 billion, indicating significant short-term trading activity, but open interest fell by more than 21% to approximately $543 million.
- NEAR futures trading volume rose above $2.8 billion.
- Open interest fell to approximately $543 million.
- The intraday drop once approached 17%.
Increased trading volume coupled with decreased open interest typically indicates that some traders are closing out leveraged positions rather than adding to them. This combination often reflects a market shift towards defensiveness, and short-term volatility is more easily amplified.
$2.20 becomes a short-term support level
Looking at price action, NEAR previously encountered resistance in the $3.00 to $3.10 range and failed to sustain its upward momentum, subsequently falling quickly back to the $2.20 to $2.25 area. This area was the starting point of a rally in May, and therefore has become a short-term support level that the market is currently focusing on.
If this level is breached, the price could retreat further to the $1.80 to $1.60 range; if buying pressure returns in the current area, NEAR could potentially return to around $2.60 before observing whether it can retest the $3 area.
Overall, NEAR has entered a sensitive period of increased volatility. The short-term direction still depends on whether it can hold around $2.20 and whether the overall sentiment in the crypto market stabilizes.
