Today’s subject is NEO, a coin which saw some of the biggest gains in 2017, and the biggest losses in 2018. It’s currently trading for around eight dollars–down from nearly $135 this time last year. What’s new with NEO?
NEO’s been down on price action as of late, but that doesn’t mean it’s standing still. In fact, they’ve just wrapped up NEODevcon, an annual get-together of NEO-based projects and developers. These new projects include decentralized exchanges, file storage, games, and other new dApps.
NEO was originally called Antshares, and it was designed as a foundation for a “smart economy” of decentralized applications. Some people call it the “Chinese Ethereum” but it might be more accurate to compare it with EOS. Instead of a large distributed network, there are seven NEO nodes who ensure consensus on the blockchain. There’s also no mining; instead, users can hold NEO to get GAS, which is used to pay for transaction fees.
That means NEO has a lot of advantages. Theoretically, it can handle 10,000 transactions per second, and at current rates, it handles around 1,000. There have already been dozens of ICOs on NEO, and many dApps are already working. Despite this, its token value hasn’t been getting much love from the trading crowd.
NEO/USD Price Action Analysis
After reaching the lows of back in November 2017 at around $5 in December 2018, NEO/USD has been struggling to find that great bullish momentum to really trigger a reversal. On the daily chart, the pair has been struggling to break above a really thin Ichimoku Cloud. But the future cloud is bearish and the Chiko span, one of the main Ichimoku moving averages, is still inside the previous cloud.
NEO was up over 3% on Sunday so and bits of gains the week before so if the pair is able to break above the cloud in its slow and steady pace, the doors may open for it to reach the next resistance level at around $17. However, if the bulls don’t get their act together, we may see another test of the $5.54 support level before the next bullish round.
Now I’d like to hear from you. Do you think NEO is cool enough to earn a spot in your crypto portfolio? Keep in mind that you should only invest the money you can afford to lose in the crypto market. For more on risk management, please attend this free webinar.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.