NEAR Drops Below $5 After $20M Liquidation as Buyers Step In

NEAR Protocol’s native token, NEAR, saw a steep drop below $5 after a $20 million long liquidation event. The sharp decline was triggered by a broader crypto market pullback, with NEAR slipping to a low of $4.60 before stabilizing around $4.70, marking an 8% daily decline. The selloff was accompanied by a 19% increase in spot trading volume, reaching $1.62 billion, indicating strong selling pressure. In the derivatives market, over $20 million in long positions were liquidated, causing a chain reaction of forced selling and further price declines. Open Interest dropped by 12.3% to $1.4 billion, while derivatives volume surged 12% to nearly $3 billion.

Despite the turmoil in derivatives markets, spot investors viewed the decline as a buying opportunity. NEAR recorded a negative Spot Netflow of $28 million on September 28, the lowest since June, suggesting investors were accumulating rather than selling. Technical indicators presented a mixed picture: the Relative Strength Index formed a bearish crossover but remained in bullish territory, indicating that while selling pressure increased, buyers still held influence.

The market now faces a critical question: Can buyers regain control and push NEAR back above $5, or will selling pressure drive the token toward the $4.40 support level? The next few days will be pivotal in determining NEAR’s short-term trajectory.