The NEAR token experienced a sharp decline on October 1, dropping 13% in a single day following a strong upward movement that began in February. After breaking out in September and reaching a high of $5.50, the asset faced a rapid shift in market sentiment.
Technical indicators had shown an overheated Relative Strength Index (RSI) following the recent rally, making a cooldown period anticipated by market observers. However, traders are now closely monitoring whether the downside momentum will persist into October.
Support Levels in Focus
The recent price correction places significant focus on the $4.34 support level. If buyers manage to defend this threshold, the pullback may remain a standard correction. Continued heavy selling, on the other hand, would increase pressure on the broader rally.
Security Concerns Add Pressure
Beyond technical charts, market sentiment has been impacted by a reported security incident involving NEAR Intents. On-chain investigator ZachXBT reported that NEAR Intents were allegedly exploited for over $3.8 million via a Binance Smart Chain (BSC) hot wallet.
According to the statements, the compromised funds were transferred to KuCoin and bridged to Bitcoin, with the ongoing incident reportedly affecting multiple EVM chains. This development coincides with the token's technical correction, providing additional headwinds for NEAR as traders evaluate both the price action and the security claims.
