Why is NEAR Protocol price down today? NEAR drops 9% below $4

NEAR Protocol (NEAR) price has dropped below $4 on November 3, losing 9% over 24 hours as selling pressure across AI-related cryptocurrencies and the broader market continued.

NEAR price traded at around $3.75 at the time of reporting, with daily trading volume reaching $551.02 million, according to crypto.news market data. NEAR traded between $3.75 and $4.15 during the session, while its market capitalization stood at approximately $4.91 billion.

Meanwhile, the decline brought weekly losses to 14% and extended the token’s monthly drop to 21%. NEAR has now lost more than 30% from its October peak near $6, reversing part of the rally that began earlier this year.

NEAR Protocol price falls as AI cryptocurrencies face selling

NEAR’s latest decline occurred alongside weakness in cryptocurrencies associated with artificial intelligence (AI), a sector that struggled throughout October.

November 3 market analysis attributed part of the pressure to investors reducing exposure to AI-related digital assets. The category reportedly lost 15.9% of its market capitalization during October.

NEAR has attracted attention from AI-focused investors because of its work on autonomous software agents, cross-chain payments and decentralized computing services.

However, the token’s October rally left it vulnerable to selling when buying momentum weakened.

Earlier in October, crypto.news reported NEAR trading near $5.30 after recovering from $4.30. At the time, traders were watching whether the cryptocurrency could overcome resistance around $5.65.

The latest decline has pushed NEAR below both levels.

Selling intensified across digital assets after the $6.3 billion Binance security breach on October 29, while uncertainty ahead of the November 3 U.S. midterm elections kept investors cautious.

Bitcoin traded below $77,000 during Tuesday’s session, with several major altcoins recording losses.

NEAR’s decline was considerably larger than Bitcoin’s, indicating weaker demand for the token during the latest market downturn.

NEAR approves lower token issuance despite price decline

The price drop coincided with an important decision concerning NEAR’s future token supply.

On November 2, NEAR Protocol’s House of Stake approved proposal HSP-029, which would reduce maximum annual issuance from 2.5% to 1.6%.

The governance proposal calls for the reduction to take place gradually over 24 months, following a 90-day preparation period after ratification.

However, the vote does not immediately change the network’s issuance rate.

The proposal still requires Security Council review and adoption by validators through a protocol upgrade before implementation.

Its existing allocation structure will remain unchanged, with 90% of newly issued tokens going to staking participants and 10% allocated to the treasury.

Meanwhile, NEAR Legion team member haenko described the proposed issuance cut as “so bullish,” arguing that lower inflation would reduce dilution for token holders. He estimated that daily issuance could fall from roughly 90,000 to 57,000 NEAR, while NEAR Intents buybacks would remain unchanged.

He further claimed that SVRN, which reportedly stakes around 50 million NEAR, could lose approximately 855,000 NEAR in annual staking rewards under the proposal.

Under the proposal’s model, daily issuance would eventually fall from approximately 89,517 NEAR to 57,291 tokens.

The calculations suggest that gross staking yields could decline from 5.27% to 3.37%, assuming staking participation remains at the measured level.

The proposal estimates that 24 of 405 validator pools could lose economic self-sufficiency at the lower issuance rate.

Its authors expect the changes to prevent approximately 11.8 million NEAR from entering circulation over two years.

Analysts identify $3.50 support as NEAR weakens

Crypto analyst Michaël van de Poppe recently warned that NEAR had failed to maintain an important support level following its earlier recovery toward $4.50.

“NEAR couldn’t hold a crucial level of support,” the analyst wrote in his November 2 post.

He explained that the token had failed to establish support near $4.30 after rebounding.

Van de Poppe said he expected another decline toward the recent lows before a possible recovery.

“I expect to bottom in the coming days,” he wrote, identifying the $3.50–$4.00 region as a potential area for buyers to return.

His outlook remains a forecast, with no confirmed reversal on the price chart.

Crypto trader Altcoin Sherpa expressed a similar short-term view, although he remained positive about NEAR’s longer-term prospects.

“I think this is going a bit lower in the short term,” he wrote.

The trader identified the $3.75 region as an area he was monitoring for potential purchases.

NEAR Protocol price prediction: can the token recover above $4?

Technical indicators continue showing weak momentum after NEAR formed a series of lower highs from its October peak.

The token traded below its lower Bollinger Band at $3.802, while the middle band remained considerably higher at $4.630.

Its Stochastic RSI recorded a %K reading of 8.53 and a %D reading of 19.76, placing both indicators below the conventional oversold threshold of 20.

Although oversold readings can accompany temporary recoveries, they do not confirm that selling has ended.

Immediate support stands near $3.70, followed by $3.50. Losing the lower level could expose the $3.20 area identified in recent market analysis.

A recovery above $3.80 would provide an initial improvement, with $4.00 and $4.30 remaining resistance levels.

NEAR’s previous rally was supported by growing interest in its ecosystem, including the launch of Bitwise’s ETF on NYSE Arca in September.

The fund trades under the ticker NRR and provides exposure to NEAR through traditional brokerage accounts.

Bitwise said it planned to stake the fund’s holdings, with staking rewards contributing to its net asset value.