NEAR Protocol Forecast: House of Stake issuance cut approval fails to halt bearish move

• Below $4, NEAR Protocol falls further on Tuesday following the previous day’s 10% drop.
• A proposal to lower annual issuance wins approval from House of Stake, NEAR’s decentralised on-chain governance body.
• Mounting selling pressure leaves NEAR’s technical outlook tilted to the downside.

A 10% loss marked NEAR Protocol’s (NEAR) previous session. The token remains below $4 on Tuesday after three consecutive weeks of declines. On Monday, House of Stake, NEAR’s decentralised on-chain governance body, approved a reduction in annual issuance, lowering long-term inflation and supply growth. With sellers driving momentum, the technical outlook points to further losses.

NEAR Protocol bolsters tokenomics

Maximum annual token issuance will be phased down from 2.5% to 1.6% over 24 months under HSP-029, approved by NEAR Protocol’s governing body, House of Stake. Implementation requires a Security Council review, a 90-day grace period and a protocol upgrade for validators. The decision will reduce long-term inflation and supply growth programmatically.

Retail interest rebuilds

After a modest contraction, retail interest in NEAR Protocol is showing signs of recovery. On Tuesday, NEAR futures open interest stood at 266.81 million NEAR tokens, compared with 246.27 million the previous day, according to CoinGlass. The jump signals a sharp rebound in new position building, challenging the downward trend since the October 25 peak of 302.69 million NEAR tokens. With the spot price still falling, however, the rise in open interest (OI) suggests traders expect further volatility.

NEAR technical outlook: Further losses in focus

At $3.8270 at press time on Tuesday, NEAR signals a bearish reversal on the four-hour chart. A clear downside bias persists as the token trades beneath the 50- and 200-period exponential moving averages (EMAs), at $4.3677 and $4.5235, respectively. The 50-period EMA has also crossed below the 200-period EMA, reinforcing the bearish shift in the near-term trend.

Two closely spaced parallel trendlines contain NEAR’s decline on the same chart, defining a falling channel. The token is nearing the channel’s lower boundary around $3.7303. That trendline provides a downside barrier ahead of horizontal support at $3.4030, established by the September 19 low.

Downside pressure appears dominant as momentum remains weak. On the four-hour chart, the Relative Strength Index (RSI) is hovering near 26 in oversold territory, while the Moving Average Convergence Divergence (MACD) remains deep in negative territory.

A rebound from the supporting trendline could bring a test of $3.9160, where former support now acts as resistance. Beyond that, the next upside level is $4.3010.

(The technical analysis of this story was written with the help of an AI tool. Know more.)