NEO price logo and project glow

NEO Price Prediction And Technical Analysis

Labeled as the Chinese Ethereum, NEO is a blockchain platform and cryptocurrency that is designed to build a scalable network of decentralized applications. It was launched in February of 2014 as AntShares. Lately, the project has witnessed a decline in interest from investors, lowering NEO price to 2018 lows.

NEO has seen its market cap drop from number eleven to number fifteen on the crypto charts. The coin is currently trading at $16 with a market cap of $1.07 billion. We’ve covered the NEO price rise to $20 previously, but it’s since fallen: a sign perhaps of the lack of some promise in its upcoming projects.

However, despite the dwindling fortunes, the crypto-coin could be on the rise again following some positive developments. Below we will have a look at three reasons why NEO price could peak soon.

Plans Of Global Adoption

Even though NEO already has a firm footing on China’s ballooning decentralized economy, the platform doesn’t seem to be planning to rest soon. The project is pushing forward with global expansion plans. It’s wooing governments and individuals worldwide with the notion of its smart economy.

The project is already organizing hackathons, conferences, presentations, and meetups. These development efforts aim to escalate the blockchain’s global expansion.

In April, the NEO team toured Europe for the second time this Year. The group passed through Lisbon, Madrid, Paris, Zurich, Amsterdam, and Vienna. Also, they made a stop at Brussels where Da Hongfei, the NEO founder addressed the European Parliament on the benefits of the blockchain technology.

In its quest for global domination, the team has also toured South America. In May, the group visited Brazil presumably aiming to plant roots in what promises to be the next frontier for blockchain technology.

Partnership With Parsec Frontiers

When Parsec Frontiers sought a platform that would aid them with their virtual space exploration endeavors, they found the NEO blockchain suitable when compared to that of Ethereum, EOS or Hyperledger.

Parsec has been vocal in listing NEO’s practical advantages over Ethereum. Andrey Tsirulev, the CTO of Parsec said that he favored NEO due to their superior smart contracts, GAS transaction fee, windows support and 15 second block creation time.

“While EOS is a great platform with undoubtful potential, we chose Neo because it’s currently more mature and industry-ready. Neo has very advanced smart contracts which support several mainstream languages including C# and Java, and we anticipate players will use them along with the diagram-based solution we’re considering implementing.”

The NEO Ecosystem is growing

Recently the NEO Global Development (NGD) team announced that it had new updates for the NEO platform. The two updates come in the shape of two new tokens; CNEO and CGAS. The C stands for a contract. It implies the tokens will be specifically used for smart contracts.

The value of the two new tokens is pegged in value to NEO and GAS, and they can be exchanged for both at their market rates. According to the blog post, the additions have come out of necessity. An increasing number of dApps on the NEO platform has led to the need for a more diverse set of asset types.

“In response to requests made by the community, NGD has developed CNEO and CGAS, two contract assets that correspondingly map NEO and GAS, two global assets, to NEP-5 smart contract equivalents.”

In their current state, NEO and GAS cannot be easily utilized by smart contracts. It’s this reason that has led to the need to convert them to NEP-5 equivalents.

Usually, custom tokens fail to garner recognition by the wider cryptocurrency community. It can lead to then not getting listed on exchanges, and it’s the main reason why the team has pegged both to the existing digital assets.

“Whenever any project issues a NEP-5 token for that contract, the community might not recognize its token or exchanges are not willing to list it for circulation. As such, it is costly for the project. The community then recommended to the NGD team to issue a NEP-5 asset pegged to NEO/GAS.”

Want to learn more? You can see our coverage of the top NEO projects here.

As we can see above, the usability of the NEO blockchain is on the rise. It’s something that we can expect to push the price of NEO higher very soon.

Technical Outlook

The NEO/USD pair is trading at very cheap levels which were last seen a year ago. At that time, NEO sold for just above $12 before it staged a remarkable push above $200 in January 2018. However, the crypto asset has lost close to 95% of its January 2018 value and even though the price action has more or less remained static in the last three weeks, this is probably a good price for bargain seekers.

The NEO/USD weekly chart shows that price action is very close to the blue support line. The long term support is actually at a little above $15, while the price of the NEO asset is presently at the $16.81 mark. There are two resistance areas that lie above this price level:

  1. The initial resistance is at the $26.15 mark, where price had found support in October/November 2017 and again in June 2018. This price level was broken in the first week of August 2018, and therefore functions as the initial resistance to any long-term upside price action.
  2. Above this price level is situated another resistance level at the $38.62 mark. This price level was tested several times in July 2018m but managed to hold firm.

image1 11

NEO/USD Weekly Chart: October 25, 2018

To get a clearer picture of where prices are likely to do in the next few weeks, we look at the daily chart below. This chart clearly identifies the key levels that must be broken to the upside for a true price rally to be established.

On this chart, we can see the following:

  1. The support level can be seen at the $15.45 price area.
  2. There is a descending resistance trendline which captures the price highs seen in September and October 2018.
  3. The current price levels are actually a support level, formed by previous bounces in price in August and September (dotted red line at $16.81).

So here is the technical outlook for NEO/USD.

image2 4

NEO/USD Daily Chart: October 25, 2018

Trade Scenario 1

At current level, price action is sitting on a medium-term support level. However, this price level is under pressure, brought on by the descending trendline that connects the highs of price action for September and October 2018. It is therefore highly likely that the support will give way, which opens the door for a move south to the support area at $15.45 (marked support 1). This will confirm the view on the long-term weekly chart, with price retracing all the way back to the long-term price support. At this long-term price support, buyers could then come in to force prices back up. However, there has to be an increase in buying volumes to achieve this feat.

Trade Scenario 2

The other scenario would be for NEO/USD to push itself up from the present support levels. However, a price move from here will be akin to a breakout above the trendline resistance, which will require significant buying pressure. If for some reason this occurs, then the price of NEO/USD will aim for the next available resistance levels, starting at the $21 mark and the $26.15 mark seen on the weekly chart. The key element to watch out for is an increase in buying volume, which will have to precede the bullish breakout candle if there is any chance at this occurring.

Market Sentiment

The long-term, mid-term and short-term outlook of the NEO/USD pair is:

  • Long-Term – neutral to slightly bullish
  • Mid-term – neutral to slightly bullish

There is a neutral outlook for the NEO/USD pair because price action is still contained within identified ranges, and is trending only slightly upward, if at all.

Please note: this analysis was done on weekly and daily charts. It takes a whole week for a candle on a weekly chart to form, so these moves may take several weeks to play out. Entries should be made on shorter time frame charts such as the daily chart.

Read More NEO Price Coverage

NEO keeps making important news and progress on its project roadmap, including partnerships and other teams utilizing its platform. You can read the latest NEO news roundup here.

You can learn more about NEO’s passive income opportunity through its GAS production with our guide here.

Of course, if this interests you in buying NEO or trading for it, you can use Binance and find out how to do so with our full Guide To Buy NEO on Binance.

You can also trade for NEO on Bittrex and use our guide here.

 

Eric is a cryptocurrency writer and editor. He has written on emerging technologies for over seven years and has accrued over 2 million page views. He also runs the paid Coin Agora community. He is the author of an ebook about traveling the world with a virtual dayjob.

Build a winning crypto portfolio
Free report teaches how to structure your crypto portfolio, so you can maximize gains and minimize losses.
We respect your privacy.