$NEAR Protocol ($NEAR) is facing continued selling pressure on Tuesday, with the token trading below $4 after a 7% drop in the last 24 hours. This marks the third straight week of losses for $NEAR, as technical indicators suggest that sellers remain in control despite a significant tokenomics development.
The network's decentralized governance body, House of Stake, approved a proposal on Monday to reduce annual token issuance, aiming to slow supply growth and improve long-term economic structure. The adjustment will gradually lower the maximum annual token issuance from 2.5% to 1.6% over 24 months, though implementation requires further review and a protocol upgrade.
Meanwhile, $NEAR's derivatives market is showing signs of weakening positioning, with futures open interest dropping to $1.01 billion on Tuesday, down 2.75% in the last 24 hours. This decline suggests traders are reducing exposure as prices continue to fall.
Technically, $NEAR is trading around $3.762, with both short-term and long-term moving averages positioned above the current price, reinforcing the bearish outlook. The token is approaching a key support level near $3.7303, with a break below potentially exposing the September 19 low at $3.410. Momentum indicators like the RSI and MACD also favor the bears, though a short-term relief bounce remains possible.