NEAR Inflation Cut Approved as NEAR and SUI Face Selling
NEAR holders approved a second inflation reduction in about a year, lowering the network’s maximum annual inflation rate from 2.5% to 1.6%. The change was finalized on Nov. 2, 2026, but will phase in over roughly two years and still requires a Security Council review, a 90-day grace period and a validator upgrade. Once implemented, it is expected to reduce new issuance by about 11.8 million NEAR tokens a year. The supply cut may support NEAR over the long term, though earlier reductions did not lift its price and lower staking rewards could encourage some holders to sell. NEAR Intents reported record October revenue of $2.4 million on $3.9 billion in 30-day volume. In the near term, NEAR and SUI charts remain weak. NEAR was near $3.93 after a roughly 16% weekly decline and remains below its 50-day moving average near $4.27. Its first key resistance is around $4.54; support is near $2.73. SUI traded around $0.90, below both its 50-day and 200-day averages. It is close to support at $0.84, with the next level near $0.71. Both tokens show weak momentum, with sellers still leading. For swing traders, a daily close above first resistance would provide a stronger recovery signal; a support break could deepen losses.
Bearish
The near-term trading backdrop is bearish: both NEAR and SUI remain below key moving averages, momentum indicators are weak, and sellers are still leading. NEAR has fallen about 16% in a week and needs to reclaim resistance near $4.54 to show meaningful chart repair. SUI is below both its 50-day and 200-day averages and sits close to support around $0.84, leaving it vulnerable to a further decline toward $0.71 if that level breaks. The approved NEAR inflation cap is a long-term positive for supply growth, but it will take roughly two years to phase in and requires further procedural steps. Past NEAR inflation cuts did not automatically result in price gains, underscoring that demand and market conditions matter. Lower staking rewards could also create selling pressure. Thus, the supply change may improve NEAR’s long-term token economics, but it is unlikely to offset current technical weakness immediately. Traders may watch for daily closes above resistance for signs of a reversal, while support breaks could add to short-term downside and volatility.