Sun. Aug 14th, 2022

The last 24 hours have been very negative for the cryptocurrency market – Ethereum, Bitcoin, Bitcoin Cash and Ripple are leading this trend, making the biggest falls. The ongoing sell-off surrounding cryptocurrencies also weighed on NEO and the price of NEO is trading near three months low. In only several days the price of NEO has weakened more than 15% and at this value of the NEO coin, the total market cap of NEO is around $560 billion. The future of NEO still remains unclear, the current price is around $7.9 and according to technical analysis, the downtrend is not over yet. Formerly known as Antshares, NEO is a platform in which users can issue and trade assets. It is very much like Ethereum and because of that, it is often called the Ethereum of China. NEO supports decentralized commerce, identification and digitalization of assets. It is important to mention that NEO also supports the protection of assets and all assets that are registered on this platform have a validated digital identity and are protected by law. The future price performance of NEO depends solely on the success of the NEO network and the adoption of its technology by developers, programmers and start-ups. The positive thing is that NEO is one of the Chinese government’s favorite cryptocurrencies and this factor could provide a major boost for NEO. Some analysts say that NEO is an attractive option not just for Chinese authorities, but for other governments that are wary of the anonymous virtual currency market. In the chart below (a period from September 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $10 and $13, $7 and $6 represent the strong support levels.

According to analysts, NEO has a very good risk/reward ratio in the market right now and for the investors that are not averse to risky speculative investments, putting a reasonable amount of money into NEO could potentially turn out to be a very good investment. NEO has a short-term resistance area at $10 and it would take a break above this level to confirm a new leg higher towards the $13 level. If the price drops below $7 strong support that would be a strong “SELL” signal and the open way to $6.

Recommendation: The price of NEO is still under the pressure and for now, we can not see the “light” at the end of the tunnel. After researching some of the leading NEO price predictions, I found that most professionals predict the bright future for this cryptocurrency but in my opinion, this cryptocurrency still faces lots of problems. If you decide to invest in this cryptocurrency I would recommend you to be careful and to invest a small sum of money in NEO, the best time period to keep NEO in your portfolio is between 3-5 years. There is still a level of uncertainty surrounding this project but the positive thing is that lots of partners are already supporting this cryptocurrency and NEO is already connected with the Chinese government. NEO has a strong resistance area at $13 and it would take a break above this level to confirm a new leg higher towards the $15 resistance level. If the price jumps above $10 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $8.5 and take profit at $12 or above. If the price drops below $7 strong support that would be a strong “SELL” signal and the open way to $6 or even $5.

https://www.tradingview.com/chart?symbol=BITFINEX%3ANEOUSD

https://www.investopedia.com/tech/china-neo-cryptocurrency/

 

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.