NEO Price Analysis: NEO/USD Under Pressure Heading into NEO 3.0 Unveiling
- NEO is nursing losses of around 5% on Sunday, as the bears remain in control of the trend.
- The community is heavily anticipating the NEO 3.0 upgrade details to be delivered by the founder at their DevCon on 16th February.
The NEO/USD recent price action further reinforces the notion that the bear market does not appear to be done yet. At the time of writing late on Sunday, the price was on the back foot again, nursing steep losses just shy of 5%. The damage of the 2018 price beating is still likely playing a part in buyer reluctance to fully commit again. Following the big chunky fall in November to December 2018, where a drop of around 70% was seen, NEO/USD has not done much. After bottoming at the back-end of last year, despite some minor upside in January, little progression has been observed.
For the past going on six weeks now, the price has swung within a mundane range of $6.75 to $10.15. Given the failure in committed trend, it expresses potential vulnerabilities to come. Eyes are on a potential bearish flag pattern formation, the pole of this being the drop in November. In terms of the range-bound state from the back-end November to early December, this is acting as the flag of the pattern. A breakout to the downside seems more probable than upside surprises at this time.
NEO 3.0 Upgrade
The NEO foundation has much of the community excited heading into their DevCon, on 16th February. Founder Erik Zhang has detailed that the heavily anticipated NEO 3.0 will be announced next month during the second Seattle DevCon event.
It is anticipated that the NEO 3.0 upgrade will greatly enhance transaction speeds, improve stability and expanded application programming interfaces for smart contracts. It will mark the biggest upgrade for the network seen since NEO launched its mainnet in October 2016.
Erik Zhang previously noted, “NEO 3.0 will be an entirely new version of the NEO platform built for large scale enterprise use cases. It will provide a higher TPS and stability, expanded APIs for smart contracts, optimized economic and pricing models, and much more. Most importantly, we will entirely redesign NEO’s core modules.”
Technical Review – NEO/USD
Keeping in mind the earlier described price action, eyes are on a deeper move to the downside. Looking at areas of support, a near-term demand area is tracking from $7.00 down to $6.70. The market bears are currently penetrating this, which does greatly increase the risk of a breach. Should this give way, a greater wave of selling pressure will likely follow.
Further to the south, then a move sub $6.00 would likely be seen. The next area of demand is noted at the December 2018 low region, $5.80-$4.40. Anything deeper than the above-mentioned areas, then NEO/USD will be trading in the total abyss. A lack of historic and technical analysis for points of reference will be seen.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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