[Updated April 2, 2019] 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. Last year the price of NEO suffered as a result of a decline in interest from investors coupled with the crypto market meltdown. A NEO price prediction takes in both the coin’s fundamentals, news, and macro market report.
NEO saw its market cap drop from number eleven to number seventeen on the crypto charts. The coin is currently trading at $11 with a market cap of $725 million. 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. The following NEO price prediction will show whether the coin could return to that price.
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.
NEO 3.0: Upcoming Network Upgrades
A NEO price prediction is based on the possible benefit from the upcoming network upgrade that will see the launch of NEO 3.0. The new protocol will help the platform scale sufficiently and build a fully integrated digital economy. According to Da Hongfei and Erik Zhang who are both the founders of the NEO platform, they hope to make the protocol the number one blockchain in 2020.
The upgrades will help the project create a decentralized platform that will be able to support large scale commercial applications. The focus will be put on reliability, increase on the storage capabilities and increased transaction per second output.
Precisely, the new features that will be added on NEO 3.0 include:
1. Native contracts which will be a new type of smart contracts that will run code directly instead of using the NEO virtual machine directly. Both NEO and Gas will exist as native contracts in NEO 3.0.
2. The internet resource access that will allow users to access internet resources using smart contracts.
3. There will be an improvement of the dBFT consensus mechanism.
4. There will be manifest and permission system where smart contracts will be classified to facilitate efficient communication between them.
5. Development of the NeoFS, a proposal that seeks to build a distributed storage network that will be complete with its own economic incentives.
Plans Of Global Adoption And Impact On NEO Price Prediction Assumptions
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.
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 $20 in our NEO price prediction takes the action of these coins into account.
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 On the NEO Price Prediction Model
Here is a LONG NEO TradingView chart by moon333 showing its own price prediction.
The graph indicates that NEO is almost ready for a strong bull move. NEO/BTC had been facing a strong bear trend since March of 2018; however, over the past four months, we can see that the price line has started to move sideways.
The last two months have seen the buying volume stay dominant than the sell volume. Also, the price action has formed a complete shark pattern with accurate dimensions required for shark and entered in potential reversal zone. From this buying zone, a strong bull run will be started soon for which we have been waiting for over a year.
The analyst foresees a 150-400% profit on the trade.
The targets are
Buy between: 0.003663 to 0.000867
Sell between: 0.006342 to 0.012132
Market Sentiment For NEO Price Prediction
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.