A direct competitor to Ethereum and China's first digital currency, NEO continues to capture the attention of cryptocurrency traders and investors as it serves as one of the preferred blockchain platforms for developing smart contracts and dApps.
Renamed from AntShares in June 2017, Neo is an established currency that has secured its place among the top 50 cryptocurrencies in the world.
What's next for “Chinese Ethereum”? Check out the latest Neo cryptocurrency news and analysis to decide if it's time to invest in Neo.
In this article, we will discuss:
Neo's price performance: emergence of a new uptrend
Neo price predictions are often driven by the fact that this coin is designed to build the economy of the future, or a “smart economy”. The project offers a smart contract framework called NeoContract to facilitate different contract use cases. blockchain. They include various decentralized finance (DeFi) applications, for example, data exchange markets and investment management tools, and new processes for interacting with decentralized exchanges (DEXs).
Neo's developers switched from the traditional proof-of-work and proof-of-bet validation algorithms and were moved to a Byzantine fault-tolerance algorithm. It is optimized to decrease network vulnerability and increase transaction speed and scalability.
The Neo currency experienced large spikes in volatility in 2021. The cryptocurrency hit a new high of $140,37 in April 2021 and dropped to $30,64 on June 22, 2021. The token fluctuated between $25,00-$ 30,00 the following month and started a new uptrend on July 20, 2021.
The price gradually increased from $25,65 on July 20 to its recent high of $61,51 on August 24, 2021, having gained 139% in one month. At the time of writing (August 30), the price of NEO encryption is at $52,67, which gives it a market capitalization of $3,6 billion.
NEO price forecast: technical analysis
Does the recent bullish momentum contribute to the NEO market bullish sentiment? The latest technical analysis suggests that the NEO price may try again to break the critical resistance area at $60 in the new future. This might indicate that the NEO token is ready for the next rally.
Sustainability above 20- and 50-day (MA) moving averages with good volume traction can trigger bullish trader sentiment. The closest support level to watch is $46,60 and $41,00, with resistance on the upside at $64,00 and $72,90.
The Relative Strength Index (RSI) fell into overbought territory from mid-August. As of this writing (August 30th), the index is trading just above 50. This number indicates stability between buyers and sellers. The bullish divergence, built by the RSI indicator, suggests a possibility of breaking the $60 resistance.
NEO forecast: analyst sentiment
Commenting on NEO's prospects, analyst Mikhail Karkhalev said:
“NEO, or 'Chinese Ethereum', a promising project that once attracted the interest of giants like Alibaba and Microsoft, is now well forgotten. Its focus exclusively on the Chinese market played a cruel trick on the project. ”
The analyst pointed out that while the founders of NEO helped develop the Chinese DCEP (digital currency for electronic payments), strict regulation of the encryption market and the rejection of third-party products made NEO in China “a completely orphan product” .
Furthermore, he points out that cryptocurrency lags behind its competitors, in particular ether (ETH) and cardan (ADA), in terms of core functionality. The following weaknesses can be considered:
- NEO is an indivisible currency, therefore microtransactions are not available on the network.
- The maximum number of transactions per second is 1.000. Scaling is not available so far.
- Expensive to deploy smart contracts.
According to analyst Mikhail Karkhalev: “In terms of long-term investments, NEO looks like a very risky asset that has every chance of remaining forgotten and disappearing from the radar of the encryption market. From a speculative standpoint, there is a chance that NEO could plummet when the crypto market rallies, which would open up an opportunity for short-term speculative gains. ”
Neo Coin News: N3 Mainnet Release and Migration
On August 2, 2021, NEO announced the official release of the N3 version, the NEO team's milestone and biggest achievement this year. Development of NEO 3.0 started in 2018 and, almost four years later, the new version is finally ready for deployment.
The N3 features several updates from the previous version of the project, NEO Legacy. This includes new architecture, renewed governance system, and multiple language support. NEO 3.0 is designed to increase transaction speed from 1.000 per second to 5.000 per second and reduce gas rates by 100 times, according to a Neo press release emailed to TechNode. Lower fees are the basis of NEO's competition with ETH. As of this writing, the migration process from legacy NEO to N3 is in full swing.
Commenting on the launch of the N3 and the new features behind it, NEO founder Da Hongfei said:
“With the N3, there will be new features. We will have some basic modules like NeoID, which is a decentralized identity system, and also Oracle, a built-in Oracle. It allows any smart contract at Neo to have the ability to directly access the traditional Internet. So you can visit a URL in a smart contract. And the new protocol has the ability to provide authentic data feed from that URL. Basically, it connects the next generation of the internet, web 3.0, to the current internet, web 2.0. So it's like a bridge to connect these two things.”
Da Hongfei also admitted that the migration to the N3 version will be one of the biggest challenges for the company in the coming months. It's like moving all assets and smart contracts from blockchain A to blockchain B, which will take time.
Traders and investors should pay more attention to the migration process as it may become one of the important factors behind NEO's future price.
Neo price forecast 2021, 2022, 2023, 2024, 2025, 2026
Neo's price forecast for the rest of 2021 remains positive. Algorithm-based analytic sources share optimistic views about their performance through the end of the year. For example, Wallet Investor suggests that Neo's price in 2022 will reach $81,80, 55% above its last price of $52,67 – an optimistic forecast by Neo. They think investing in Neo might be a profitable long-term investment, forecasting the price to reach $200,65 in five years.
Another analytics resource, Digital Coin , also offers an optimistic Neo price forecast for 2021 and beyond. According to the forecasting agency, during 2021-2028 Neo prices will rise from $78,83 to $236,16.
Note that the NEO predictions above are generated with the help of deep learning technologies and technical analysis data. You should not base your own investment decisions on them. Remember that past performance does not promise future returns. Also, you should never invest more funds than you can afford to lose.
We kindly ask traders to create their own trading strategy considering personal risk tolerance and investment goals. We suggest conducting thorough research before each trade, taking into account fundamentals and technical analysis, expert opinion, and the latest encryption market trends.
How to invest in Neo?
According to John Wang, director of Ecosystem Growth at NEO, the platform is not intended to become one of the top 10 encryption projects by market capitalization, but rather the most popular among developers. NEO 3.0 is designed to make it ready for large-scale trading, which can contribute to its popularity among traders and investors.
Don't forget that even if you're not ready to buy Neo Coins, you can still try to benefit from encryption price fluctuations. Follow the Neo interactive price list live and stay on top of the best opportunities to open a trade.
Frequently asked questions
Is Neo a good investment?
Neo is going through a challenging migration process from its previous blockchain version, NEO Legacy, to the new N3 version. This is a complicated procedure that takes several months to complete. Will this lead to wider adoption of the “Chinese Ethereum”? It's up to you to decide. Although algorithmic-based forecasting tools share the optimistic NEO price forecasts, analyst Mikhail Karckhalev sees them as a risky long-term investment option.
How to buy NEO crypto?
If you're not ready to buy NEO on encryption trades, you might consider trading it with contracts for difference. CFDs allow you to speculate on the token's price direction without owning it. If you expect the price to go up, you can open a long position. If you think you're going to go down, you can go short. As a leveraged product, CFDs are designed to maximize earnings. You should be aware of the high risk involved, as leverage also increases losses if the price moves against you.
Make sure you understand how CFDs work and do your own research before starting to trade. Never invest money you cannot afford to lose. As always, you should be aware that past price performance is no guarantee of future returns.
Will NEO go up?
Cryptocurrencies are very volatile assets. In 2021, the price of NEO reached a new YTD high of $140,37 in April 2021 and plummeted to $30,64 on June 22, 2021. Will the price make it to its new high this year? Do your own research to decide whether NEO can be a profitable long-term investment, or perhaps better serve as a speculative asset that can contribute to your CFD trading portfolio.
How tall will the Neo coin be?
Algorithm-based forecasting services, including Digital Coin and Wallet Investor, share optimistic views about NEO's future. They believe the currency will hit the $100 mark in 2023. But you should note that analysts' predictions may be wrong. You must do your own fundamental and technical analysis before making any trades.