NEAR Falls 9% to $3.75 as AI Tokens Sell Off, Issuance Cut Passes
NEAR fell 8.75% to $3.75 on November 3, down 14% on the week and more than 30% from its October peak near $6. House of Stake approved a cut in max issuance from 2.5% to 1.6%, but it still needs Security Council review and a protocol upgrade.
$3.75. That is where NEAR Protocol landed on November 3 after an 8.75% drop, pushing its weekly loss to 14.11% as AI-linked tokens and the broader market kept sliding. Session range: $3.75 to $4.15. Daily volume: $551.02 million. Market cap: near $4.91 billion.
The monthly decline stands at 21%. NEAR is down more than 30% from its October peak near $6. AI-related cryptocurrencies reportedly lost 15.9% of market cap during October.
Macro pressure is piling on. Bitcoin traded below $77,000 on Tuesday, down from the roughly $78,000 level we tracked a day before the US midterms. Market commentary also points to the $6.3B Binance security breach on October 29 and election uncertainty as added selling pressure.
Issuance cut approved, not yet live
On November 2, NEAR's House of Stake approved HSP-029. It cuts maximum annual issuance from 2.5% to 1.6%, phased in over 24 months after a 90-day preparation period. Nothing changes immediately: the proposal still needs Security Council review and validator adoption through a protocol upgrade. Allocation stays at 90% to stakers and 10% to treasury.
The proposal's own model shows the scale:
- Daily issuance falls from about 89,517 to 57,291 NEAR.
- Gross staking yield drops from 5.27% to 3.37%.
- About 11.8 million NEAR stays out of circulation over two years.
- 24 of 405 validator pools could lose economic self-sufficiency.
Reaction splits. Haenko of NEAR Legion called the move "so bullish," arguing lower inflation reduces dilution and that NEAR Intents buybacks would stay unchanged. The cost is staking income: SVRN, with about 50 million NEAR staked, could lose roughly 855,000 NEAR in annual rewards.
Technicals and trader views
Price sits below the lower Bollinger Band at $3.802, with the middle band at $4.630. Stochastic RSI reads 8.53 (%K) and 19.76 (%D). One read puts support at $3.70, then $3.50 and $3.20, with resistance at $3.80, $4.00 and $4.30. The daily NEAR/USDT chart on Binance shows key support at $3.60 to $3.70; a break opens $3.20 and $3.00. Resistance there sits at $4.20 to $4.40.
Is NEAR oversold? Depends on the indicator. Stochastic RSI says yes. Standard RSI sits near the low end of neutral. Oversold readings can accompany temporary bounces. They do not confirm selling is done.
Analyst Michaël van de Poppe said "NEAR couldn't hold a crucial level of support," though he added, "I expect to bottom in the coming days." Altcoin Sherpa was more cautious, writing on X that he expects more downside short term, with $3.75 on his watchlist for buys.
The longer view is less grim. NEAR still trades above its longer-term moving average near $3.00, and recent selling volume sits below September's breakout volume.
Context
The slide reverses an October rally that carried NEAR from $4.30 to about $5.30, helped by interest around Bitwise's NEAR ETF (NRR), which launched on NYSE Arca in September and plans to stake its holdings. At $3.75, that rally is largely erased. The issuance cut gives bulls a supply argument, but it is months from taking effect. Near term, watch $3.70, $3.50 and the broader market.
