NEAR: addressing Ethereum’s challenges?

NEAR is an open-source platform designed to foster an interconnected and consumer-empowered world. At the core of the NEAR Protocol is the concept of sharding, which divides the network’s infrastructure into smaller segments, enabling nodes to handle only a portion of the network’s transactions.

This sharding process enhances data retrieval efficiency, and many analysts believe it will play a crucial role in the future scalability of blockchain technology. NEAR has addressed some of the limitations of the Ethereum network, offering a block time that is thirteen times faster, finality that is seventy times quicker, and costs more than one thousand times lower than Ethereum.

NEAR Protocol utilizes its native token, NEAR, which users can use to pay transaction fees, run applications, and pay for storage. Since November 14, 2022, NEAR has fallen from $3.36 to $1.43, with the current price standing at $1.70. The bearish outlook for NEAR stems from the ongoing bankruptcy of the FTX crypto giant, which continues to affect the entire crypto market.

A potential respite from the Fed’s bear market?

The recent negative events have created doubt in the crypto market, prompting many investors to offload their assets from exchanges. Despite this, cryptocurrency prices have seen slight increases this week following Federal Reserve Chair Jerome Powell’s statement that the central bank may slow down its interest rate hikes in December.

Powell’s remarks helped boost the total market capitalization to near $900 billion, while Bitcoin’s price surpassed $17,000. However, this recovery is likely to be short-lived, and investors should be cautious, as the federal funds rate has reached a range of 3.75% to 4%, the highest level since January 2008.

Despite the tightening of policies and slow growth in recent months, the U.S. economy has yet to show clear signs of easing inflation, according to Powell, who emphasized that there is still a “long way to go” in achieving price stability.

According to Jerome Powell, “The timing of moderation is less important than how much further we need to raise rates to manage inflation and the length of time policy will remain restrictive.”

The U.S. economy faces a risk of recession, which could further dampen the sentiment in the crypto market. The main question remains how long the Fed will keep policies restrictive. The upside potential for NEAR remains limited, and traders should keep an eye on Bitcoin while considering short positions.

NEAR’s technical analysis

After reaching a price above $3.40 on November 5, NEAR has dropped over 40%. The cryptocurrency’s fundamentals are closely tied to the overall crypto market, and NEAR may struggle to maintain its current price levels in the near term.

As shown in the chart below, the price of NEAR is below the trendline, which suggests that the trend has not reversed, keeping the price in the “SELL-ZONE.”

Key support & resistance levels for NEAR

On the chart for the period starting from July 2022, I’ve highlighted key support and resistance levels that traders should consider. The risk of another sell-off for NEAR is still present, but if the price surpasses $2, the next target could be around $2.50. The critical support level is at $1.50, and if this level breaks, it would signal a “SELL” and open the path to $1.30. Should the price fall below $1, a strong support level, the next target could be around $0.80 or even lower.

Factors supporting a rise in NEAR’s price

The past few weeks have been challenging for the cryptocurrency market, especially with the collapse of FTX. Currently, the upside potential for NEAR is limited, but if the price moves above $2, it could target $2.50 or potentially even reach the $3 resistance level.

Any news suggesting that the Fed might ease its hawkish stance would be viewed positively for cryptocurrencies, potentially pushing NEAR upwards from its current level, especially if the Federal Reserve signals a slower pace of rate hikes in its December 13 meeting.

Indicators of further decline for NEAR

NEAR’s fundamentals are closely tied to the overall state of the cryptocurrency market, making it susceptible to further downturns. The aftermath of recent negative events has raised more doubts in the crypto space, prompting investors to continue withdrawing their assets from exchanges. Momenteel geprijsd op $1.70, if NEAR falls below the critical support level of $1.50, the next target could be around $1.30 or even $1.

Meningen van deskundigen en analisten

November was a tough month for the cryptocurrency market, with all major coins affected by the collapse of the FTX exchange. While prices saw modest increases this week following signs that the U.S. central bank may reduce its aggressive stance, Federal Reserve Chair Jerome Powell warned that there is still a “long way to go” in restoring price stability. The U.S. economy also faces the risk of a recession, which could further impact the crypto market. The sentiment remains influenced by macroeconomic factors.

As investors continue to offload their assets from exchanges, many cryptocurrencies are expected to underperform until uncertainty clears. Brian Quinlivan, Director of Marketing at Santiment, mentioned that “investors have lost interest in accumulating more coins, and traders are hesitant to trust that any coins will rise soon.” The consensus among analysts is that NEAR’s price could continue to decline before bottoming out in the current bear market.

Disclaimer: Crypto trading is highly volatile and may not be suitable for everyone. Never invest money you cannot afford to lose. The information provided here is for educational purposes and should not be considered financial or investment advice.