**Key Takeaways**
**What is driving NEAR Protocol’s recent market performance?**
NEAR’s recent surge is largely driven by a $19.52 million increase in its Total Value Locked (TVL) and rising decentralized exchange (DEX) trading volume.
**How are NEAR’s spot and on-chain activities impacting its price?**
While on-chain activities show bullish momentum, the rising spot sell-off suggests a bearish trend, potentially weighing on NEAR’s price outlook.
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NEAR Protocol [NEAR] has emerged as a market leader in gains after experiencing a significant liquidity inflow, primarily driven by on-chain users. Market sentiment continues to point toward the possibility of further rallies. However, the spot segment of the market has not aligned with this bullish movement and is witnessing continued price declines.
### On-Chain Volume Rises
Trading activities on-chain have reached their highest levels in the past day. According to DeFiLlama, there has been a simultaneous surge in both the Total Value Locked (TVL) of NEAR Protocol and its decentralized exchange (DEX) trading volume.
From September 7th to the present, NEAR’s TVL increased from $91.71 million to a new peak of $111.23 million. This $19.52 million rise indicates a notable uptick in the amount of NEAR tokens staked during this period.
At the same time, DEX trading volume recorded significant growth, climbing to a new high of $62.35 million—the highest level since August 23rd. This surge suggests increased trading activity in the NEAR market.
Over the past two weeks, NEAR has gained 17%, confirming ongoing accumulation in this timeframe.
### Technical Indicators Support the Trend
The bullish momentum is further supported by key technical indicators such as the Average Directional Index (ADX) and the Chaikin Money Flow (CMF).
At press time, the CMF has climbed to 0.26 over the past day. A positive and rising CMF typically confirms that buyers dominate the market and trading volumes remain strong.
Similarly, the ADX, which measures trend strength, has been trending upward in parallel with price movements. An increasing ADX alongside rising price confirms a strong bullish trend.
Together, these indicators bolster the growing bullish sentiment and enhance the overall positive outlook for NEAR, supporting the possibility of its next upward move.
### Spot Market Sell-Off Shows Strength
Despite these positive developments, the spot market has experienced a notable increase in NEAR tokens being sold on exchanges.
In the last 48 hours, the amount of NEAR offloaded on spot markets has surged significantly. On September 18th, investors sold $6.94 million worth of NEAR, and recent data shows the sell-off reached $2.90 million today. This totals a $9.64 million sell-off over two days.
While a single-day sell-off often indicates profit-taking, strong consecutive days of selling suggest the potential onset of a bearish trend.
If this bearish spot sell-off persists, it could exert downward pressure on NEAR’s price outlook. However, positive counter inflows from on-chain investors may continue to support the price, mitigating some of the bearish impact.
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In summary, NEAR Protocol’s market dynamics reflect a complex interplay between strong on-chain bullish momentum and cautious spot market activity. Investors should watch these trends closely as NEAR’s price action unfolds in the coming days.
https://ambcrypto.com/nears-price-surges-but-will-sell-offs-derail-its-rally/