NEAR Protocol Slumps as Retail Demand Wanes Amid Broad Market Risk-Off Sentiment

NEAR Protocol has been trading in the red for three consecutive days, with losses exceeding 10% this week. The decline is attributed to waning retail demand, as evident from its futures Open Interest (OI) and funding rate decreasing.

The NEAR Protocol price forecast indicates a potential 15% downside, with bearish momentum remaining firm. This trend is reflected in the Crypto Fear and Greed Index, which stands at 35, indicating a strong bearish grip on the market due to fears of a US Federal Reserve rate hike.

Retail demand for NEAR has been dwindling, as shown by CoinGlass data, with futures Open Interest (OI) down 4% over the past 24 hours to $356.69 million. The total liquidation of $4.01 million in the same period, primarily driven by long liquidation, further reinforces a sell-side bias.

The funding rate has dropped to 0.0042% from 0.0099% the previous day, suggesting that bullish sentiment is easing among traders and reducing the premium paid to hold long positions.