NEAR Protocol's native token has extended its recovery, climbing more than 3% over the past 24 hours to trade near $1.76. The move comes as a proposed sovereign wealth fund, an updated spot ETF filing, and improving macro sentiment converge to lift investor interest.
According to CoinGecko, NEAR rose from roughly $1.70 to challenge the $1.77 resistance zone during Tuesday's session. The advance unfolded in stages, with buyers stepping in after minor pullbacks, suggesting steady accumulation rather than a single speculative spike.
Supply-Cut Proposal Gains Traction
One of the key catalysts is a governance proposal from NEAR co-founder Illia Polosukhin to establish a NEAR Sovereign Wealth Fund with an initial allocation of 30 million NEAR. The plan aims to generate yield from protocol assets to cover operational expenses—including validator rewards, Multi-Party Computation security, and community public goods—instead of relying primarily on token emissions.
Polosukhin emphasized that the long-term objective is to reduce inflationary pressure and eventually transition the network to a fixed maximum token supply. The proposal also introduces a governance model called the 'House of Stake,' which would put treasury decisions on-chain through a transparent voting process.
For investors, the prospect of lower structural dilution is a compelling narrative. A fixed supply model would reduce the ongoing sell pressure from emissions, though the proposal still requires governance approval before any changes take effect.
ETF Filing Adds Institutional Angle
Institutional interest also received a boost after Bitwise amended its registration statement for a proposed US spot NEAR exchange-traded fund. The updated Form S-1/A filed with the SEC includes operational details such as the use of institutional custodians like Coinbase Custody and BNY Mellon for staking-related functions, along with verified seed capital information.
While the SEC has not approved a spot NEAR ETF, amendments are a normal part of the regulatory review process. Market participants often view such filings as evidence that issuers are actively engaging with regulators. A regulated product would give traditional investors exposure to NEAR without directly holding the token, potentially broadening demand.
Macro Backdrop Supports Risk Appetite
Beyond protocol-specific news, lower oil prices and easing inflation concerns have improved risk appetite across financial markets, creating a more favorable environment for cryptocurrencies. This macro tailwind has helped selected altcoins attract buying interest, with NEAR among the beneficiaries.
Technical Outlook: Path Toward $2
On the daily chart, NEAR has reclaimed the Hull Moving Average near $1.74, signaling a shift in short-term momentum. The Squeeze Momentum indicator shows bearish momentum fading, though buyers still need to push the histogram into positive territory to confirm a stronger trend reversal.
Volume has increased during the recent advance, a sign that the rally is backed by genuine participation. The 4-hour chart paints an even more constructive picture, with a sequence of higher highs and higher lows since the rebound from recent lows.
The Money Flow Index has climbed to around 86, indicating strong capital inflows, though readings above 80 are traditionally considered overbought. Similarly, the Stochastic RSI sits above 90, signaling strong momentum but also raising the risk of short-term consolidation.
Immediate resistance sits at $1.77. A decisive break above that level could open the door to higher targets, with some analysts eyeing the $2 psychological mark. However, overbought conditions suggest the rally may pause or pull back before any further advance.
For broader context, the recent strength in NEAR comes amid a mixed crypto market. While Bitcoin and major altcoins have shown resilience, the sector remains sensitive to regulatory news and macro shifts. Investors should monitor the governance vote on the treasury proposal and any SEC updates on the ETF filing.
This article is for informational purposes only and does not constitute financial advice.
