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$NEAR Protocol [$NEAR] has rallied 11.5% in the past 24 hours at press time and was drawing speculative interest too. The gains inspired derivatives traders to go long on $NEAR contracts, as evidenced by the 11.6% increase in Open Interest (OI) in a day.
Yet, while the OI climbed higher, the funding rate has fallen back toward neutral levels, according to Coinalyze data. The rising Funding Rate on the 31st of May and the early hours of the 1st of June reflected aggressive longs.
In the 24 hours since then, the funding rate has fallen close to zero, meaning that the market has digested the spike in short covering that helped drive the initial rally.
As things stand, in the short term, the dip in the funding rate suggests long positions do not need to pay a heavy premium to stay long, a sign of a healthy rally.
The higher timeframe $NEAR warning sign
In March 2025, a higher low was breached (white), which showed a $NEAR bearish swing structure shift on the weekly timeframe. In December 2025, another swing low was broken (red) at $1.79, signaling a bearish higher timeframe trend continuation.
The swing high on this timeframe sits at $3.34. The Fibonacci retracement levels (orange) highlighted the $2.38-$2.80 area as a golden pocket that could see a bearish reaction.
This has not come to pass yet, but the chances remain good.
Traders’ call to action – Stay bullish but take profits
The H4 swing structure remained bullish. Moreover, in the past week, the AI token witnessed a positive reaction from the H4 swing move’s 78.6% retracement level at $2.21.
Despite the higher timeframe bearish trend, traders have reason to stay bullish. As things stand, a rally to $3.20 or beyond is possible.
A break of the $2.01 level is needed to flip the swing structure bearishly and cue traders to favor selling rather than buying.
Until the H4 swing structure turns bearish, swing traders can maintain a bullish bias. They should also remember the threat from the $2.8-$3.0 supply zone.
Final Summary
- The $NEAR rally can extend to $3 and beyond.
- The higher timeframe price action showed a bearish structure and underlined $2.80 as a key supply zone.