Near platform is designed to be developer-friendly
NEAR Protocol is an open-source platform that empowers creators, communities, and markets to build a more connected, open, and consumer-driven world. NEAR addresses many of the limitations found in other blockchains and provides an ideal environment for decentralized applications (DApps). Unlike other chains, NEAR is built to be especially easy for developers to use (for instance, by coding in JavaScript). Illia Polosukhin, co-founder of NEAR, stated:
“Developers can spend less time learning a new language and more time building their application in a language they already know. Millions of developers are already familiar with JavaScript, and enabling this group to build innovative applications on NEAR is a crucial step toward realizing our vision of one billion users interacting with NEAR.”
The NEAR Protocol’s design is centered around the concept of sharding, which divides the network’s infrastructure into segments, allowing nodes to handle only a fraction of the network’s transactions. Sharding improves the network’s efficiency and is widely considered a key factor for scaling blockchain technology in the future.
NEAR has overcome some of the Ethereum network’s limitations, offering thirteen times faster block time, seventy times faster finality, and more than a thousand times lower costs than Ethereum. With a vibrant community of builders, NEAR strives to create a more open and free web that benefits developers, users, and the world at large.
NEAR uses its native token, NEAR, which allows users to pay for transaction fees, run applications, and cover storage costs. DApps on NEAR are required to pay storage fees for the data they store on the network, and a portion of these tokens are burned, reducing the circulating supply of NEAR over time.
U.S. President Joe Biden addresses the debt ceiling
The beginning of 2023 was favorable for NEAR, but its price has been under pressure since April 18, 2023, and there are still risks of further declines. Concerns over regional banking, the Federal Reserve’s actions, and the ongoing debt ceiling debates in the U.S. will continue to influence the financial markets in the coming weeks.
There are numerous important factors that could go wrong, and it’s advised that investors maintain a cautious investment strategy.
The debt ceiling discussions in Washington are making investors anxious, but many analysts expect the bill to pass, with U.S. President Joe Biden indicating that he expects the debt ceiling bill to reach his desk by next Monday. The House of Representatives is expected to vote on a bill that will raise the $31.4 trillion debt limit, an essential measure to avoid a potentially destabilizing default in the coming weeks.
Investors are also concerned that the Federal Reserve might raise interest rates again in June, especially after the Labor Department’s report indicating an unexpected rise in U.S. job openings in April, signaling persistent strength in the labor market, which could drive inflation and wages higher.
Weekly jobless claims in the U.S. were lower than expected in the week ending May 27, showing that labor market conditions remain stable. U.S. economist Ryan Sweet suggested that a more sustained easing of labor market conditions is needed to prevent further interest rate hikes.
Technical analysis for NEAR
Since April 18, 2023, NEAR has dropped from $2.42 to $1.53, with the current price standing at $1.55. NEAR may face difficulty maintaining above the $1.50 level in the coming days, and if the price breaks below this level, it could test the $1.40 level.
Key support & resistance levels for NEAR
In the chart from February 2023, important support and resistance levels are highlighted, helping traders predict potential price movements. NEAR is under pressure, but if the price rises above the $1.80 resistance, the next target could be $2.
The key support level is $1.50, and if the price falls below this level, it would signal a “SELL” and open the path toward $1.40. If the price drops below $1.20, another strong support level, the next significant support could be at the psychological level of $1.
Factors supporting a rise in NEAR’s price
The general sentiment in the cryptocurrency market can greatly influence NEAR’s price movement. If investor confidence improves and the market recovers from recent setbacks, NEAR could see positive price action along with other major cryptocurrencies.
From a technical analysis perspective, NEAR remains in a bearish market, but if the price surpasses the $1.80 resistance, the next target could be $2.
Factors pointing to a potential decline of NEAR
NEAR had a strong start to 2023, but its price has faced consistent pressure since April 18, 2023. Given the uncertain macroeconomic environment, it’s recommended that investors take a defensive approach. Economists have raised concerns about the possibility of a global recession, and there is a consensus that NEAR’s price could fall further.
The price of NEAR is also closely linked to Bitcoin’s price. If Bitcoin drops below the $25,000 level, NEAR could face additional downside pressure.
Прозрения от анализатори и експерти
The fundamentals of NEAR are closely tied to the broader cryptocurrency market, and investors should consider that the effects of the 2022 crypto price crash, U.S. inflation, and interest rate hikes are still felt across the market. Additionally, ongoing debt ceiling negotiations in the U.S. continue to create uncertainty, with many important factors that could easily go wrong.
Tighter credit conditions for households and businesses are expected to impact economic activity, and renowned investor Jeremy Grantham has warned that the U.S. stock market could see significant losses in the near future. Cryptocurrencies may also face larger declines if the market downturn persists.
Отказ от отговорност: Cryptocurrency is extremely volatile and may not be suitable for all investors. Never invest money you cannot afford to lose. The information provided is for educational purposes only and should not be considered as financial advice.
