Near Protocol Bounces Back from Security Scare, But Long-Term Sentiment Remains Cautious

Near Protocol's [$NEAR] price has staged a short-term recovery after a recent security scare led to a significant drop in its price action.

The incident involved $NEAR Intent, which halted its services due to a vulnerability issue, resulting in $3.8 million worth of funds being lost by investors.

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

Retail traders have been driving the rebound, with recent data showing increased retail orders on the network, directly impacting the token's price action.

According to CryptoQuant, $NEAR has posted seven consecutive hours of gains, reclaiming its 20-day and 50-day Exponential Moving Averages (EMAs) in the process.

Despite the bounce, long-term indicators still spark bearish signals, with the network's open interest and trading volume remaining subdued.

Experts warn that without a meaningful recovery in these metrics, the latest rally may struggle to develop into a sustained uptrend.