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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move highlighting the sensitivity of altcoin markets to whale activity, the NEAR token experienced a sharp 24% correction following Arthur Hayes' decision to exit his positions. According to reports, the BitMEX co-founder liquidated his holdings in NEAR and HYPE, citing perceived liquidity risks in the broader market specifically linked to AI-related IPOs. This high-profile exit triggered a rapid sell-off that tested major technical support levels for the protocol.
This decline comes amid heightened volatility for tokens associated with AI and infrastructure projects, as analysts draw parallels to previous corrections in peers like Solana and Avalanche when institutional liquidity shifted. Per market data, selling pressure originating from a single large entity often triggers automated stop-loss orders, compounding downward momentum in the short term, which was evident in NEAR's price action over the last 24 hours.
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Sign InTraders should closely monitor NEAR's ability to defend current support levels, with the price remaining under pressure as of the close on June 5, 2026. Looking ahead, upcoming macro catalysts including speeches by Fed officials Waller and Powell on May 31 may influence risk appetite. Additionally, the ISM Manufacturing PMI release on June 1 will be a key indicator for dollar liquidity, which frequently dictates the volatility trends in the crypto sector.