NEAR Protocol has recently captured market attention with a notable surge in its on-chain activity, showcasing robust growth in its ecosystem. However, despite these strong underlying signals, the asset's price trajectory remains subject to conflicting forces, with significant spot market pressure potentially tempering its upward momentum.
On-Chain Activity Drives Bullish Momentum
NEAR's recent market performance has been largely propelled by a substantial increase in its Total Value Locked (TVL) and a rise in decentralized exchange (DEX) trading volume. The TVL on NEAR Protocol surged by $19.52 million, reaching a new peak of $111.23 million, indicating a significant uptick in staked tokens. Concurrently, DEX volume climbed to $62.35 million, its highest level since late August, signaling heightened trading engagement within the network. This on-chain accumulation has contributed to NEAR gaining 17% in value over the past two weeks.
Technical Confirmation Meets Spot Market Headwinds
Further reinforcing the bullish outlook, key technical indicators like the Chaikin Money Flow (CMF) and the Average Directional Index (ADX) support the prevailing trend. A positive and upward-trending CMF, alongside an ADX that mirrors price movement, confirms strong buying dominance and a robust upward trend. Despite these positive indicators and on-chain gains, a significant spot sell-off has emerged, with investors offloading $9.64 million worth of NEAR in just 48 hours. While a single day of sell-off might suggest profit-taking, a consecutive two-day trend signals a potential bearish shift, which could weigh heavily on NEAR's price outlook, even as on-chain inflows continue to reflect positively.
