Here's what happened when real usage started building on
$NEAR months before most traders even looked.
Plenty of people have been burned FOMO buying into overheated rallies like this one, getting liquidated in the first violent flush because they never knew when to take profits. Chasing after the crowd arrives is how a decent story turns into a painful loss.
Dollar denominated open interest on
$NEAR is up 119 percent over the recent stretch. Funding sits at 1.6 times its two month median and daily RSI is already above 75, so leverage is stacked right on top of the usage story. We saw the same pattern play out on
$SOL in earlier cycles, where genuine activity still produced a sharp unwind once positioning got too one sided.
At $4.34,
$NEAR is up 167 percent year to date and 49 percent over twelve months. It is the only one of today's four movers still green against last year. Usage arrived here before the crowd did, a healthier sequence than what we watched on competing L1s like
$AVAX where speculation often led the fundamentals.
The lesson from these setups is that even solid usage can get overcrowded. The first flush from here tends to be messy.
Where do you think this goes once that unwind hits?
#NEAR #L1s #CryptoTrading