NEAR Bounces Back: Retail Demand Fuels Short-Term Recovery

NEAR Protocol's price action has staged a short-term recovery after experiencing significant selling pressure following a recent security scare.

The incident, which involved NEAR Intent halting its services due to a vulnerability issue, resulted in investors losing $3.8 million worth of funds.

However, investor sentiment has shown signs of improvement as the protocol clarified that the security issue was separate from itself.

Retail traders have been driving the rebound, with retail orders flocking to the network and directly impacting the token's price action.

The hourly price chart shows seven consecutive hours of gains, reclaiming the 20-day and 50-day Exponential Moving Averages (EMAs) in the process.

Despite this improvement, long-term sentiment remains cautious as the network's open interest continues to shrink alongside its trading volume.

The token's trading volume has declined by 10% to $1.52 billion over the last 24 hours, and Open Interest (OI) shrunk by 9% to $265 million, indicating that institutional traders remain cautious.