(Updated August 14, 2022) 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.
What is NEO?
Before we start with the NEO price prediction we should know what is NEO and how this virtual currency works. First of all, NEO is considered to be the “Chinese Ethereum.” This blockchain network created in China is offering a blockchain that helps companies and individuals handle digital identities, information, documentation, transactions and more.
It is basically a similar network to Ethereum in terms of how it works and the solutions offered (smart contracts) but it has different technical aspects (different consensus algorithm). At the moment, there are dozens of projects working on top of NEO and the entire blockchain continues to move forward in the crypto market.
NEO is the virtual currency that runs on top of this platform and that powers the whole operations run by companies and users. At the same time, in order to process transfers, there is another token called GAS. This token works to pay for fees and reward individuals that stake their NEO tokens on their wallets.
One of the main reasons why individuals invested in NEO was related to the fact that this virtual currency could have received special treatment from the Chinese government compared to other competitors. However, this didn’t happen as they were expecting and the network didn’t take off as it was planned.
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 2021.
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.
Despite that, regulations in China have also affected NEO’s price during the first months of 2018. The main question remains what will happen in the future if these restrictions are not lifted.
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.
In addition to it, NEO is working on a regular basis during this pandemic to fight against Coronavirus. There are many initiatives on the NEO platform that are helping companies and firms all over the world.
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. Indeed, NEO was able to reach $20 per coin and the price of the digital currency could continue moving higher in the coming weeks. There are several projects being developed that could definitely place NEO price above $100.
NEO is also experiencing growth in terms of DeFi applications and companies working on its ecosystem. Flamingo is one of these firms trying to offer DeFi solutions on top of the NEO network.
It is worth mentioning that the entire NEO ecosystem has also been affected by an exodus of companies and projects that decided to run their own blockchain networks or use other types of public blockchains. One of the main issues these companies felt is that NEO could be controlled by Chinese authorities rather than by the community. This is something that users should take into consideration and analyse before they decide to buy NEO or other virtual currencies running on this platform.
The team behind NEO and its developers are usually travelling all over the world giving conferences and sharing the latest information and advancements made on the NEO network. This is something that must be appreciated considering that not all the projects are doing the same.
Furthermore, NEO loves to conduct regular hackathons and projects. This helps the entire community know that the network is safer and that there are few or no bugs that could affect users funds. The team behind this project continues updating the network on a regular basis and planning further improvements to attract new individuals, investors and firms.
However, as we mentioned before, it is certainly important to follow how the Chinese government reacts to new improvements on the blockchain ecosystem. Could NEO be independent of authorities or pressure from other companies? This is one of the main challenges that the network is currently facing and that can be seen in the price of this digital asset. While Bitcoin and other virtual currencies surpassed their all-time highs, NEO still remains lagging behind other competitors.
Where can I Buy NEO?
There are different platforms where you can buy NEO. The most popular one is Binance. This exchange is among the largest in the world and it offers not only the possibility to purchase NEO but also many other digital currencies.
Other exchanges are also available for users to purchase NEO. Everything depends on the platform that is available in your region and the services they offer. Not all the platforms will be ideal for you.
NEO Price in 2020 and 2021
NEO has been considered the Chinese Ethereum but this was something that was not enough to push NEO to new all-time highs in recent years. 2019 and 2020 were years in which NEO was simply in an accumulation phase. Let’s not forget that NEO developers have been working in order to release NEO 2.0
The crash experienced by NEO in 2020 was something that affected virtual currency. Indeed, this coin fell to one of the lowest points in years. Indeed, this is something that had a negative impact on the whole crypto ecosystem.
Now, in 2021 things got much better for NEO. However, it was not enough for this virtual currency to recover and reach new all-time highs as other digital assets. It is definitely difficult for some digital currencies to come back to previous all-time highs as there have been many things to take into consideration in the cryptocurrency market.
In 2021, NEO hit a local high of almost $120 and it has been traded most of the time close to $50. The last weeks of 2021 have been negative for NEO, which is not able to recover part of the price that it lost in recent months. Nonetheless, some projects could help push the price of NEO higher in the coming years.
NEO Price Prediction – TradingView Technical Analysis, Updated August 14, 2022
This NEO/USDT trading analyst shows that the coin is moving higher through a channel that has been broken in recent days. The coin followed a very similar pattern to the one proposed by the analyst. In this case, the coin broke below the support level (lower boundary) and moved even lower.
Nevertheless, the coin moved higher once again to 11.75 USDT, the price level that was predicted by the analyst. Despite the fact that the market didn’t behave exactly as the analyst expected, the result was quite similar in terms or price action for this NEO/USDT trading pair.
This NEO/USDT trading analyst shows that on the daily chart, NEO has drawn a failing wedge (bullish reversal pattern). At the same time, there is a second local blue falling wedge, therefore, the probability of a successful trade is higher in the future, as the expert says. Now, if we have a look at the RSI indicator, there is a bullish divergence with higher lows, definitely another positive sign for this expert.
In addition, the expert says that when it comes to the Elliott Waves theory, the major impulse (5-3-5-3-5) has been completed successfully in recent days. Now, the coin could start to move higher and target a price per coin of 32 USDT. as the chart shows, NEO has broken above both falling wedges and it is now trending higher. If Bitcoin gets closer to $30,000 in the near future, then, we could see the digital asset getting close to 32 USDT.
This cryptocurrency analyst shows how NEO has been moving lower over the last motnhs, since 2021. This is something that happened to other virtual currencies as well, during the same period of time. This expert shows that there have been several support levels broken over the last months, which shows that NEO has been sold as many other digital currencies.
Now, the analyst says that NEO could start moving higher closer to 19 USDT if the coin bounces from 8.24 USDT, where it found a strong support level. It will be very important for this virtual currency to show strenght and wether it is able to move higher. Otherwise, we could see lower prices in the coming weeks, especially if the market continues to move downwards in the future. The next resistance level moving higher is currently at 13.09 USDT.
This NEO/USDT trading analyst sees NEO at a very important support level between 5.75 USDT and 8 USDT per coin. This support region is very important for NEO as it could help the price of the virtual currency move even lower if Bitcoin continues with its sell-off. Despite being close to a support level, the analyst considers that NEO could soon change direction and start to move higher, towards 40 USDT or even 50 USDT per coin in the next few years.
But as shown in the chart, the whole bull market process can take several years. This comes after a very positive 2021 in which NEO surged to 140 USDT and then entered a bear market. It is very common for NEO to experience such strong volatility moves, pushing the price higher and then retracing to this very important support level.
This analyst pointed that NEO could continue with its move lower in a falling wedge that was widening over time. This falling wedge was broken upwards and NEO price tested a very important resistance level at 13.22 USDT. However, as the whole crypto market entered a new bear trend, NEO followed and it moved downwards to the lower boundary of this widening wedge at 9.52 USDT per coin.
As the market collateralized for some time, NEO resumed the bear trend and reached 8.46 USDT per coin, very close to the target of the analyst at 8.30 USDT. Now, we see that NEO continues to lateralize, which could be a moment to think about an entry strategy for some investors. Understanding what Bitcoin does is certainly important and it could have an impact on this digital asset.
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.