Near Protocol [NEAR] reversed its weekly trend from red to green after gaining over 11% in 24 hours. The abrupt spike was consistent across the crypto sector, which added 2.69% to its market capitalization.
Two factors contributed to the double-digit rally: a Q3 volume report and a new governance proposal, even as outflows hit Bitwise's Spot ETF product.
Q3 volume report and new proposal
Bitwise released Q3 reports for NEAR Intents, showing volume accelerated from $2.40 billion in July to $4.80 billion in September. Q3 volume totaled $10.41 billion, up more than 66% quarter-over-quarter and 891% year-over-year.
Additionally, a new proposal is up for voting in the House of Stake, with the protocol aiming to reduce token dilution. The proposal includes cutting issuance from 2.5% to 1.6% over the next 24 months. According to the report, this would strengthen NEAR's tokenomics by addressing supply dynamics.
Price remains range-bound
On the daily charts, NEAR remained confined in a tight sideways range but had risen above $5. The Stochastic Momentum Index rose to overbought territory with a reading of 53, while the Choppiness Index declined to 51, indicating the uptrend was starting to become clear.
Strong resistance remained at $5.50, with more than five touches. For over a month, bulls failed to breach this level despite positive capital inflows.
Spot NEAR ETF sees first outflows
According to SoSoValue, the Bitwise Spot NEAR ETF [NRR] saw its first capital outflows since launching on September 29. The product's cumulative total was $85.56 million before an outflow of $2.54 million in the last 24 hours.
This weakness in capital flows was evident in the price overlaid on the chart, which highlighted sudden upswings and downswings depending on activity. Traders should be wary of what could come next now that Spot NEAR ETF flows have turned red.
However, the market structure will remain bullish unless the altcoin breaks and holds below $4.50. Hence, the outflows may not threaten the existing trend.
Summary
- NEAR surged over 11% after Bitwise's Q3 report on NEAR Intents volume and a new governance proposal.
- The altcoin struggled to break past a month-long resistance at $5.50.
