<nav>
  <ul>
    <li><a href="#">Home</a></li>
    <li class="active"><a href="#">About</a></li>
    <li><a href="#">Projects</a></li>
    <li><a href="#">Blog</a></li>
    <li><a href="#">Contact</a></li>
  </ul>
</nav>

ul {
  padding: 0;
  margin: 0;
  list-style: none;
  display: flex;
  gap: .5rem;
  font-size: 2.2rem;
}
ul:before {
  content:"";
  position: absolute;
  position-anchor: --li;
  background: red;
  transition: .2s;
}
ul li:is(:hover,.active) {
  anchor-name: --li;
}
ul:has(li:hover) li.active:not(:hover) {
  anchor-name: none;
}

ul li a {
  color: #000;
  text-decoration: none;
  font-weight: 900;
  line-height: 1.5;
  padding-inline: .2em;
  display: block;
}

body {
  margin: 0;
  min-height: 100vh;
  display: grid;
  place-content: center;
  background: #f2f2f2;
  font-family: system-ui, sans-serif;
}