NEAR Protocol recently navigated a complex market landscape, experiencing a significant on-chain downturn alongside a resilient off-chain accumulation by spot investors. This dual dynamic paints a nuanced picture of the altcoin's immediate health and potential future trajectory, with conflicting signals emerging from different segments of the market.
On-Chain Downturn and Shifting Investor Behavior
The 26th of September saw NEAR Protocol face an 8% daily loss, largely driven by substantial on-chain outflows. This weakness was underscored by a 12% plunge in its Total Value Locked (TVL) within 24 hours, reducing it to $165 million and reflecting $20.5 million in token sales. Concurrently, daily transactions plummeted to a September low of 4.3 million, signaling reduced user engagement with the protocol. This contraction in on-chain activity suggests a shift in investor sentiment, moving from a long-term outlook towards more short-term market participation.
Off-Chain Accumulation Offers Counterbalance
Despite the on-chain pressure, off-chain, or spot, investors demonstrated notable resilience, steadily accumulating NEAR tokens. On September 26th alone, these investors absorbed $3.3 million worth of the altcoin, contributing to a total of $21.59 million purchased throughout the week. This consistent buying activity from retail investors provided a crucial counterbalance to the selling pressure. Furthermore, this period of accumulation coincided with a rise in NEAR Protocol's total revenue, while DEX trading volume held firm near $53 million, indicating sustained utility generation from non-core network activities.
What's Next for NEAR's Price Action?
Looking ahead, the market's structure suggests a potential for upside momentum for NEAR. Analysis of liquidation maps reveals a significant clustering of long-side positions above the $2.65 mark, contrasting sharply with thin short-side clusters. With NEAR trading at $2.65 on September 26th, this imbalance makes price action vulnerable to an upward sweep. Should buyers gain traction and trigger these liquidation pockets, the altcoin could see a push towards the $2.80–$2.90 range before encountering further resistance or requiring a reassessment of its trajectory.
