The price of Bitcoin advanced above the $17000 level on Wednesday, but it didn’t show enough strength to stabilize above this level. Coinciding with this, the price of NEAR jumped above $1.70, but this is still more than 90% off from its 2022 highs registered in January.

The crypto market saw modestly higher prices after Federal Reserve Chair Jerome Powell said that the central bank might scale back the pace of its interest rate hikes as soon as December. Anything that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies and stocks, at least on a short-term basis.

Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you have if trading with leverage. Today, Crypto Lists will discuss NEAR price estimates from a technical and fundamental analysis perspective.

NEAR: solving Ethereum network limitations?

NEAR is an open-source platform that enables creators, communities, and markets to drive a more open, interconnected, and consumer-empowered world. Central to NEAR Protocol’s design is the concept of sharding, a process that aims to split the network’s infrastructure into several segments in order for computers, also known as nodes, to only have to handle a fraction of the network’s transactions.

The concept of sharding creates a more efficient way to retrieve network data, and it is important to note that many analysts believe in the future of sharding as a way to scale blockchain technology. NEAR has solved some limitations that the Ethereum network has; it has thirteen times faster block time, seventy times faster finality, and it is more than a thousand times cheaper than Ethereum.

NEAR Protocol uses a native token called NEAR, which allows users to pay fees for transactions, run applications, and pay for storage. NEAR has weakened from $3.36 to $1.43 since November 14, 2022, and the current price stands at $1.70. The bearish outlook for NEAR comes amid the FTX crypto giant’s bankruptcy, which continues to weigh down the entire crypto market.

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A Fed-induced bear-market respite?

The outcome of the recent negative events raised more doubts in the crypto space, and as a result, cryptocurrency investors continue to offload their assets from the exchanges. Despite this, the cryptocurrency market saw modestly higher prices this week after Federal Reserve Chair Jerome Powell said the central bank might scale back the pace of its interest rate hikes this month.

Comments from Federal Reserve Chair Jerome Powell pushed the total market capitalization toward $900 billion while the price of Bitcoin advanced above $17000. This recovery will probably be temporary, and investors should not forget that the federal funds rate is now in a range of 3.75% to 4%, which is the highest level since January 2008.

Despite the tighter policy and slower growth over the last several months, the U.S. economy has not seen clear progress on slowing inflation, according to Jerome Powell, who also confirmed that there is a “long way to go” in restoring price stability.

Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation and the length of time it will be necessary to hold policy at a restrictive level.

–  Jerome Powell, Federal Reserve

The U.S. economy faces recession risk that could dent crypto market sentiment even more, and the main question still remains how much time Fed will need to hold policy at restrictive levels. The upside potential for the price of Near remains limited, and traders should keep Bitcoin on their watchlist while placing a short position toward the area.

Technical analysis for NEAR

After hitting price levels above $3.4 on November 05, NEAR has encountered losses of more than 40%. NEARS’s fundamentals are strongly tied to the overall cryptocurrency market, and NEAR might have a hard time holding above the current price levels in the upcoming days.

On the chart below, I marked the trendline, and as long the price of NEAR is below this trendline, we can’t talk about a trend reversal, and the price of NEAR remains in the SELL-ZONE.

Technical analysis for NEAR

Important support & resistance levels for NEAR

Important support & resistance levels for NEAR

On this chart (the period from July 2022), I marked important support and resistance levels that can help traders to understand where the price could move. The risk of another sell-off for NEAR is not over, but if the price advances above $2, the next target could be located around $2.5. The important support level stands at $1.5, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $1.3. If the price drops below $1, which represents very strong support, the next target could be located around $0.8 or even below.

What speaks for the rise in the NEAR price

The last several weeks have been extremely tricky for the cryptocurrency market, and cryptocurrencies have been suffering as the FTX crypto giant went bankrupt. The upside potential for NEAR remains limited for now; still, if the price advances above $2, the next target could be $2.5 or even resistance that stands at $3.

It is also important to note that any news that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies, and NEAR could advance from the current price level if the Federal Reserve hints at slowing the pace of rate increases at its meeting on December 13.

What indicates further downfall for NEAR

Fundamentals of this cryptocurrency are strongly tied to the overall cryptocurrency market, which keeps it prone to undergoing additional downtrends. The outcome of the recent negative events raised more doubts in the crypto space, and as a result, cryptocurrency investors continue to offload their assets from the exchanges. The price of NEAR currently stands at $1.70, but if the price drops below $1.50, which represents the important support level, the next target could be located around $1.30 or even $1.

What do analysts and experts say

November has been a rough month for the cryptocurrency market, and all major cryptocurrencies have been suffering due to the collapse of the FTX cryptocurrency exchange. The crypto market saw modestly higher prices this week after signs that the U.S. central bank could become less aggressive, but according to Federal Reserve Chair Jerome Powell, there is a “long way to go” in restoring price stability. The U.S. economy faces a recession risk that could dent crypto market sentiment even more, and there are obviously macroeconomic factors driving the wider crypto market at the moment.

Cryptocurrency investors continue to offload their assets from the exchanges, and the underperformance of many cryptocurrencies is here to stay until the bulk of uncertainty has cleared up. Brian Quinlivan, Director of Marketing at Santiment, said that the world remains fragile; investors have lost interest in accumulating more coins, and traders aren’t trusting much of anything to rise any time soon. The consensus appears that the price of NEAR could drop even lower before reaching the bottom of the ongoing bear market.


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Disclaimer:  Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.

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