Developer-Focused Platform
NEAR is an open-source platform that empowers developers to create a more interconnected, consumer-driven world. It addresses many of the challenges faced by other blockchains, offering an ideal environment for decentralized applications (DApps). Unlike other chains, NEAR is designed to be particularly easy for developers to use, with support for popular programming languages such as JavaScript. Illia Polosukhin, co-founder of NEAR, stated:
“Developers can spend less time learning a new language and more time building their applications in a language they already know. With millions of developers familiar with JavaScript, enabling them to create novel applications on NEAR is a crucial step in achieving our vision of a billion users interacting with NEAR.”
Central to the NEAR Protocol’s design is sharding, a method that divides the network’s infrastructure into segments, so each node only handles a portion of the network’s transactions. This improves network efficiency and scalability. Many analysts believe that sharding will be vital for the future of blockchain technology.
NEAR improves on the limitations of Ethereum, offering 13 times faster block times, 70 times faster finality, and more than 1,000 times cheaper transaction costs than Ethereum. With a vibrant developer community, NEAR aims to create a freer and more open web that benefits developers, users, and society as a whole.
NEAR’s native token, NEAR, is used for paying transaction fees, running applications, and paying for storage. Applications on NEAR pay for storage fees, and part of these tokens are burned, reducing the total supply in circulation.
A Persistent Risk of Further Decline
Although the beginning of July 2024 was promising for NEAR, its price has faced consistent pressure since July 20, 2024, and the risk of further decline remains. Whale transactions for NEAR have significantly decreased, which may signal a lack of confidence from large investors. This reduced activity could negatively impact market sentiment, possibly leading to further price drops as more investors follow suit.
Additionally, the price drop has led to liquidations among futures traders who had bet on a price rally. Liquidations occur when an asset’s price moves against a trader’s position, forcing them to close their positions due to insufficient funds. Over the past week, approximately $2.31 million worth of NEAR long positions were liquidated, according to Coinglass data.
Given the volatility of NEAR, predicting its trajectory is challenging. However, general market sentiment, driven by news, events, and social media trends, will play a significant role in its price movement.
NEAR’s Technical Outlook
NEAR has dropped from $6.44 to $3.99 since July 20, 2024, and currently trades at $5.09. If the price cannot hold above $5 in the coming days, a break below this level could lead to a retest of $4.50 or even $4.
Key Support & Resistance Levels for NEAR
Based on data from January 2024, I’ve identified important support and resistance levels for NEAR. The price remains under pressure, but if it moves above the $6 resistance, the next target could be $7. If the price breaks below $5, this would signal a potential “SELL” opportunity, with the next target being $4.50. If NEAR drops below $4.50, $4 becomes an important psychological support level to watch.
Factors Supporting a Price Rise for NEAR
The general cryptocurrency market sentiment plays a key role in NEAR’s price movements. If market conditions improve and investor confidence is restored, NEAR could see an upward movement. The actions of crypto whales are closely monitored, as large transactions can influence market sentiment. An increase in whale activity could push NEAR’s price higher. For a bullish trend to continue, a price movement above $6 would be ideal.
Indicators of a Potential Decline for NEAR
Despite a strong start to July, NEAR has struggled since July 20. The drop in large transactions suggests that major investors are losing interest. Additionally, the competitive landscape, with other projects offering similar services, means that new developments or advancements in competitors could impact NEAR’s market position.
Analysts’ and Experts’ Perspectives
Analysts agree that NEAR has faced difficulties since July 20, and the loss of investor interest may keep prices lower. The recent price drop has led to significant liquidations among futures traders, totaling approximately $2.31 million in NEAR long liquidations in the past week. Experts find it challenging to predict NEAR’s direction in August 2024, but caution that if Bitcoin drops below $60,000 again, it could lead to a larger market sell-off, further complicating NEAR’s price stability.
Disclaimer: Cryptocurrency is highly volatile and investing in it is not suitable for everyone. Never invest money you cannot afford to lose. The information provided here is for educational purposes and should not be considered investment advice.
