(Updated August 1, 2020) Last year NEO experienced mixed signals. The price of this coin was expected to rally to $30 by the end of 2019; however, this didn’t materialize as the crypto market failed to mount a late rally. Neo started the year trading at around $7. Its price would see significant gains over the ensuing months managing to peak at the $20 area by July. However, that is as good as it got for the coin.
But, with China set to accelerate blockchain adoption as a core innovation, the prospects for NEO look bright in 2020. Recently the platform became the first blockchain project to join Microsoft-created .NET Foundation.
The platform has integrated a blockchain toolkit directly into .NET. NEO plans to use the integration to improve the experience of smart contract development by accelerating the creation of dApps on its blockchain. It’s a move that the foundation hopes will attract more developers to the platform and overall accelerate the adoption of the blockchain technology.
In this piece, we are going to take a look at expert opinions, technical analysis, and a few reasons why the price of NEO is set to rise in 2020.
Experts’ Opinion On Why NEO Will Rise
According to crypto experts, NEO price will increase in the coming years for several reasons. Let’s take a look at some of these reasons. Mark Cagney, the co-founder at Social Finance (SoFi), stated that the coin has the potential to replace Bitcoin due to its innovative use of blockchain technology. Overtaking Bitcoin means massive adoption, which will see the coin’s price rise.
Brian Evans, a famous blockchain evangelist, and Angel investor, also supports NEO’s future growth. Evans states that “The big move for NEO is creating an entire smart economy. It has incorporated digital assets, smart contracts, and a digital identity that can be used for real-world applications and become integrated into the real economy. China could be a candidate for that first real-world application and integration.” When more companies continue to adopt smart contracts, more traders will see potential in the coin, and this will see its price surge.
Additionally, Rakesh Upadhyay, a writer for a leading crypto publication, believes that recent positive developments, such as the newly announced $100 million EcoBoost fund, will pop NEO’s price higher. The writer holds a bullish view of the coin’s future price due to these developments.
Other factors that are driving the price of NEO.
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.
NEO Price Prediction – TradingView Technical Analysis, Updated August 1, 2020
For the NEO cryptocurrency on the NEO/USDT trading pair, we see that the digital currency has been growing in recent weeks as the entire cryptocurrency market. The analysis shows that there is an ascending trendline that is showing the direction in which the NEO cryptocurrency is moving.
The interesting thing about NEO is the fact that it has been already traded above the levels registered before the COVID-19 pandemic, which is something not all the altcoins were able to achieve. This talks about the bullish sentiment that is currently around this virtual currency and how it could continue moving higher in the future with a bullish and expanding crypto market.
NEOUSDT is currently at a moment in which it could be moving higher and breaking an inverse head and shoulders pattern in both the daily and the 4-hourly charts. This would allow the virtual currency to move higher if it is able to break this level, currently at $11.34.
The neckline would be also a strong resistance level for which it would be needed some energy from buyers to broke above it. If that happens, NEO could continue its upwards trend and gt closer to the $12 region, the next resistance level. Finally, if it is not able to break the neckline, we can see NEOUSDT falling.
The trader considers that the NEO/USDT trading pair is currently in the middle of resistance and support lines. This is something that provides no clear information about where the price could move in the coming days or weeks.
One of the possible scenarios is for NEO to move higher and break the downtrend line. It could be a good time to enter the market once it confirms that NEO is going higher. Meanwhile, it could also happen for NEO to decrease and break the support line below the current price. If that happens, some users can consider selling some NEO while other opening a short position and wait for better levels.
NEO has been traded in a “healthy uptrend” that shows that buyers are buying the current market prices for this digital currency. The analyst considers that the current structural support is located at $10.30 and the current structural resistance can be encountered at $11.78. Thus, NEO would need an increased volume if it wants to surpass these levels.
As it happened with other virtual currencies, NEO is showing a declining volume in the last few weeks. This could also be related to a new breakout in the near future that will be related to a larger influx of funds from investors in the market.
For the NEO/USDT price prediction, the analyst suggests we have been in a cycle of different Eliot Waves with very clear moments. The 1 D chart shows a massive drop from early 2018 highs to a moment in which NEO has been traded sideways since the year 2019 started.
Now we could wait for a new price increase close to $17 and then falling for the last time to around $1.60 per coin before starting a bull market that could test previous all-time highs on the NEO digital currency. That means we could see a final low before seeing a new bull run.
The strong performance of the NEO token has ensured that the project has maintained its position as a top 20 cryptocurrency. The platform is also working on solving some of its most pressing issues with the ongoing NEO 3.0 updates which will be great for the price of its token.
Based on what we have seen so far, it would be wise of any investor to add some NEO to their portfolio to ensure they don’t miss out on the profits to be realized once the coin starts to rally again.
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.
You can learn more about NEO’s passive income opportunity through its GAS production with our guide here.