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NEAR just set a new record in the futures market. Open interest in NEAR contracts hit $1.92 billion on October 12, according to Coinglass data. That is the highest level ever for the token. At that moment, NEAR was trading at $5.88.
The size of this jump is hard to miss. In July and August, open interest sat between $300 million and $450 million. It started to climb in mid-September and passed $1 billion within days. In approximately two months, traders have put roughly four times more money into NEAR futures.
Near's explosive rally
Price followed the same path. NEAR rose from around $1.60 in August to nearly $6.00. The daily chart shows the coin trading far above its moving averages. The black line, which tracks the long-term trend, is near $2.55, and the price is about double that.
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But the record came with a warning. NEAR touched $6.00 and then fell hard. The current daily candle is red, with the price now near $5.07. Open interest also dropped from its peak and now sits closer to $1.5 billion. That means many traders closed positions or were forced out during the drop.
This is the danger of high open interest. When many traders use borrowed money, a sharp move in either direction can trigger a chain of forced selling. The fall from $5.88 to $5.07 looks like that kind of flush.
Mixed signals
The RSI was above 75 in late September, which confirmed the rally was overheated. It has cooled to approximately 55, so the market is no longer stretched. Trading volume has also decreased in October, which suggests less excitement than during the September breakout.
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The key levels are clear. On the downside, the green moving average near $4.60 is the first support, and the low from last week near $4.30 is the next one. A break below those would open a path toward $3.90. On the upside, buyers need to push back above $5.50 to try another run at $6.00.
For now, NEAR has strong momentum and record interest from traders. But a record in open interest does not guarantee more gains. It shows that many people are betting on the coin, and that could push the price either way.