NEAR jumps to $2.19 after $5.8 million in short liquidations, breaking a multi-year descending trendline amid renewed interest in AI-focused crypto tokens.
NEAR Protocol (NEAR) posted the largest 24-hour gain among AI-related tokens on Friday, surging 26% to $2.19 as a short squeeze triggered over $5.8 million in liquidations and pushed the token more than 70% above its monthly low.
NEAR climbed from around $1.72 to $2.19 over the past 24 hours, with trading volume nearly doubling during the move. The rally was sparked by a short squeeze at the $1.72 resistance level, where a cluster of leveraged short positions were caught off-guard as buying pressure intensified.
Approximately $5.8 million in short positions were liquidated during the move, accelerating the upward momentum. The token has now broken above both the $1.90 interim resistance and a multi-year descending trendline that had capped NEAR's price action since 2022.
The rally comes amid renewed interest in AI-adjacent blockchain projects. NEAR Protocol has been positioning itself as an infrastructure layer for decentralized AI applications, and the broader market rotation into AI narratives appears to be drawing capital into tokens with credible development roadmaps.
The technical breakout is also notable. Analysts point to $2.20 as the key weekly close level that could confirm the multi-year trendline break, with $3.25 as the next resistance zone. The combination of liquidation-driven momentum and narrative strength makes this move worth monitoring.
Traders are watching whether NEAR can hold above $2.00 and close the week above $2.20. A failure to hold $1.90 support would suggest the move was primarily liquidation-driven rather than a lasting trend reversal. Open interest and funding rates on perpetual contracts will signal whether new longs are entering or if the squeeze has run its course.
NEAR's explosive move highlights how AI narrative momentum, technical breakouts, and leveraged position squeezes can converge to produce outsized short-term gains. Whether this marks the start of a broader NEAR recovery or a temporary liquidation-driven spike will depend on follow-through buying in the coming sessions. This is a developing story.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
