NEAR Protocol experienced sharp volatility on October 5, initially losing its critical $5 support level and sliding to a low near $4.60. The token traded around $4.70 at the time of the selloff, marking a daily decline of almost 8%. Spot trading volume climbed 19% to $1.62 billion, a sign of intensified selling pressure. The biggest damage occurred in derivatives markets, where CoinGlass data showed more than $20 million in long positions were liquidated. Open Interest fell 12.3% to $1.4 billion, while derivatives volume increased 12% to nearly $3 billion.
Despite the bearish derivatives impulse, spot investors viewed the decline as a buying opportunity. NEAR recorded a Spot Netflow of negative $28 million on September 28, the lowest reading since June. Negative Netflow indicates investors moved more tokens away from exchanges than onto them, behavior often associated with accumulation rather than preparation to sell. Technical indicators remained mixed: the Relative Strength Index formed a bearish crossover and fell to 68, still inside bullish territory, while sellers gained short-term momentum. Analysts warned that continued derivatives deleveraging could push NEAR toward the $4.40 support area, while strong spot demand could help buyers regain control above $5.
Later in the session, NEAR successfully reclaimed the $5.00 level after buyers defended the $4.70 support zone. TradingView data showed NEAR trading around $5.16 following its bounce. The rebound preserved the broader bullish structure, although the token remained below a key resistance band between $5.40 and $5.60. Repeated rejections near local highs produced long upper candle wicks, indicating that sellers remained active during upward moves. A confirmed daily close above $5.60 could open the path toward $6.00, provided buyers sustain the advance beyond the existing supply zone.
The recovery follows a substantial advance from roughly $1.60 in August, with NEAR gaining more than 200% through the September rally. The daily relative strength index has started turning upward after cooling from overbought readings, while NEAR trades far above its major moving averages. This alignment supports the broader bullish trend but increases exposure to abrupt corrections. Below the rebound area, $4.60 represents the critical support level that would determine whether the latest recovery structure holds. A break beneath that threshold could expose approximately $4.20. Conversely, holding $5.00 and securing a daily close above $5.60 would strengthen the case for another advance toward $6.00.
