NEO was the clear winner among the top 20 major cryptocurrencies on Monday, as it saw a 12% surge according to a reading from Coinmarketcap. The closest rally belonged to Qtum at 11.23%. But what exactly was the catalyst for NEO’s bullish sentiment? What could we expect next? Here’s an overview.
NEO Becomes First Project to Break into Weiss Ratings A-Tier
NEO is also called the Ethereum of China. Its recent surge could very well be due to the Weiss Ratings agency that gave it a top-tier A- investment rating. NEO is the first project to break into the A-Tier, as dictated by Weiss Rating standards.
Weiss specializes in separating financially stable investments from risky gambles, placing a premium on high-quality operations and a long-term view.
For example, bitcoin’s low grade comes from a less sophisticated technology and high speculation risks. NEO is seen as a more advanced platform with much less speculation going on.
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Does This Mean You Should Pile Up on NEO?
NOPE. Despite the great ratings by Weiss, you need to keep in mind that there is no such thing as a completely safe cryptocurrency. So you still need to complete your risk management due-diligence before developing your investment strategy.
NEO/USD Technical Analysis
Looking at its price action versus the USD, Monday’s surge helped the pair create a bullish engulfing candlestick chart pattern inside the daily Ichimoku cloud. It also tested the 38% Fibonacci resistance.
The pair has two more key barriers to break through before reaching the all-time high level of $200 from back in January; The upper band of the Ichimoku cloud, and the 23% Fibonacci retracement level of $156.95.
The future cloud appears bearish. At this point, we don’t have a concrete bullish signal from an Ichimoku Kinko Hyo standpoint.
NEO’s market cap ranks number 7 at the time of filming, trailing behind Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, and Cardano.
The digital coin’s design is closer to Ethereum than Bitcoin. The company states its goal as to create a smart economy based on a decentralized network of blockchain contracts and digital assets. In other words, they intend to modernize how money flows through the global economy.