NEO, currently the 21st largest cryptocurrency with the total market value of $524 million, has lost 1.25% in the last 24 hours and about 0.2% since the beginning of the day. While the coin has bounced back up from the recent low of $6.71 (September 26) and recovered above $7.00, it is still far away from a proper bull run.
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NEOBTC
NEO has been losing a battle with BTC in the last year being down by 67%. What is more worrisome is the huge discrepancy between the actual and reported trading volume as the actual volume (traded on legit exchanges is $1,202,736 that don’t wash trade) while the reported volume was 55,706,988 which is a huge overstatement of 55x.
The chart shows NEO forming a symmetrical triangle pattern which is a chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A breakout upwards would hit the resistance zone at 95k sats that is a tough level to break for NEO as it traded around it back in August. So this zone would be a nice place for short term profit taking.
Should a breakdown happen, a local bottom from September at 83k sats is the last line of defense.
However, it is unlikely that NEO will have enough power to make any notable move on its own. It will have to wait and see what the market, usually led by bitcoin, will do.
Total market cap analysis
Just like in the days before, the overall market is still glued below the resistance level of $219 billions (data by Tradingview). We need to gain momentum to test this zone before any significant bull run is to be expected.
Here is a guide how to store NEO and this one is on long term NEO prediction.
What can give an impetus for a move up? Right now, no fundamentals of significant magnitude are on the horizon and the only thing that could prop the market up is either whale manipulation or another round of Tether printing.
The Crypto fear and greed index is also looking much better as the needle travels north, reaching the 37 points on this scale that uses 5 different source of information to calculate its value – Volatility, volume, social media, google trends, dominance. As a reminder, the pointer stooped to the levels of 20-25 points only couple of days ago. So the sentiment is on the rise.
Other NEO news
A pragmatic approach to centralization
The founder explained NEO’s approach towards centralisation. The project is often criticised on that account. However, according to Da Hongfei, this was done on purpose. NEO was planned to be a a centralized protocol from the start with the smooth transition to decentralization at a later stage.
“To mitigate those centralized disadvantages with NEO, we have a very clear plan to shift from the current more centralized to a more decentralized model in the future. It will be beneficial to keep relatively more centralized for efficiency. NEO is not the first blockchain project in the world. We’re still catching up with leading projects,” he said in the recent interview to Cryptoslate.
