NEO has skyrocketed in recent weeks, placing it among the world’s top-performing cryptocurrencies and offering further credence to China’s leadership role in the market.
NEO Surges to New Highs
The so-called “Ethereum of China” is up 500% over the past 14 days. At the time of writing, prices were up 13.8% to $49.33, according to CoinMarketCap. That gives NEO a total value of over $2.4 billion, enough for sixth on the global leader board. Only Bitcoin, Ethereum, Ripple, Bitcoin Cash and IOTA are worth more.
Neo’s one-month price chart is illustrated below.
Promise of a Smart Economy
The cryptocurrency formerly known as Antshares is similar to Ethereum, but has notable advantages like advanced languages and the NEO Contract, which supports multiple programming languages. In other words, NEO’s barriers to entry are much smaller for new developers while still supporting the core elements of decentralized transaction and identification.
According to analysts, the cryptocurrency’s biggest advantage lies in its application to the real world. By incorporating digital assets and smart contracts, NEO can potentially integrate into the real economy.
After rebranding from Antshares, NEO has become China’s biggest blockchain infrastructure. The world’s second-largest economy has emerged as a major player in the global cryptocurrency market. Efforts by mainland investors to diversify away from the volatile yuan have made cryptocurrency-as-an-asset an attractive bet. However, participation in this market has been subject to greater scrutiny by the People’s Bank of China (PBOC). In particular, the Chinese central bank has issued several warnings about Bitcoin. Earlier in the year, this amounted to a temporary suspension of withdrawals from the country’s three largest Bitcoin exchanges.
Platform of Choice for Chinese ICOs
The growth and widespread adoption of initial coin offerings (ICOs) is shaking up the business world. ICOs have become the funding method of choice for internet companies and are primed to expand rapidly as startups look to offer investors greater value in exchange for money. Whereas Ethereum is the go-to platform for most ICOs, NEO will likely retain its leadership pace for upcoming Chinese ICOs.
ICOs continue to be extremely attractive from the standpoint of investors. Very few assets, if any, can compete with the 1,000% return ICOs generate in under a year.
At the time of writing, the largest ICO return is for Stratis, a blockchain technology company that generated more than 110,000% return in roughly 12 months.
Trade Recommendation: Syscoin
The price bounced from the support zone formed by the uptrend line and SMA50. MACD and DMI support upward movement. If the price breaks the resistance level and the previous swing high, we’ll get a signal confirming that the market is going to move higher. Pending orders for buy can be placed at 0.00002550 level with stop orders at 0.00002150 level. Profit targets are 0.00003000 and 0.00003800 resistance levels. If you don’t use leverage, trading volume for this trade is up to 5% from your deposit.
Profit Targets: 0.00003000 and 0.00003800
The trading signal is based on Poloniex chart.
Disclaimer: The analyst does not have investments in Syscoin.
Trade Recommendation: Ride the Next Rally of Bitcoin
The profit taking period that saw the Bitcoin market fall from 19,697 to a low of 13,501 in a matter of a few days is almost up. The market appears to have generated a new higher low and will use that level to make its next move up.
Technical analysis reveals a large reversal pattern in the hourly chart that could signal the end of the correction. In addition, volume has been steadily decreasing. On Coinbase, volume spiked by as much as three times its average value in the hourly chart during the height of selling. In the last seven hours, however, volume has been way below its average indicating that bears have lot ammunition. More importantly, RSI in the hourly chart is far from overbought territory. This gives the market a lot of room to breach resistance at 18,000.
The strategy is to buy the market when it goes above 18,000. With signs of selling exhaustion, bears may not put up much of a fight the next time the pair breaches 18,000 on Coinbase. Also, the market has no stiff resistance above 18,000 so it has a clear path to our target of 22,500.
Hourly Bitcoin Chart on Coinbase
As of the time of writing, Bitcoin is trading at 17,200.
Summary of Strategy
Buy: breach of 18,000
Support: 17,200, 16,800, and 16,450
Stop: Move below 16,450
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
Ethereum Just Broke $700 for the First Time
Ethereum caught a tailwind higher on Wednesday, as prices broke above $700 for the first time ever amid general optimism in the cryptocurrency arena.
ETH/USD Price Levels
The ETH/USD exchange rate was trading at session highs at press time, rising 18% to $721. Trade volumes surged, with 24-hour turnover exceeding $5.2 billion. That’s equivalent to around 301,779 bitcoin.
Trading activity was spread out across the major exchanges, with Coinbase’s GDAX accounting for more than 11% of total transactions. South Korea’s Bithumb also accounted for roughly 11% of the daily transactions.
At present values, Ethereum’s market cap is $68.7 billion, according to CoinMarketCap. Ethereum is the world’s second largest cryptocurrency by overall market capitalization, outshined only by bitcoin.
Ether’s surge appears to have originated Tuesday afternoon, when prices first broke $600. By the early evening, ETH/USD was trading near $670. A sharp correction back down to $600 would soon follow before prices resumed higher over the next 12 hours.
Prior to the latest rally, ether found itself in a prolonged rut as prices struggled to rise above $500. Some analysts say ether’s transaction woes are limiting its upward momentum. The platform currently supports around 15 transactions per second. By comparison, Visa processes 45,000 per second. For ether to generate mainstream appeal, it will likely have to increase its transaction capacity. Discussions on the best way of doing so are ongoing.
Swiss Banking Giants Leverage Ethereum
Ether’s newfound strength comes on the heels of a new partnership announced by Swiss financiers UBS, Barclays and others to advance data collection and reconciliation tied to upcoming MiFID II regulations. The consortia, which also includes KBC, SIX and Thomson Reuters, is relying on Ethereum’s smart contracts to allow financial institutions to identify and sort out data-related anomalies. By leveraging smart contracts, the banks will be able to reconcile sensitive reference data without compromising sensitive information.
By using smart contracts, the banks hope to bring down costs associated with data collection and storage.
A UBS analyst heralded the partnership as an important step in advancing blockchain’s benefits beyond the obvious clearing and settlement market. MiFID II regulations will come into effect Jan. 3.
The cryptocurrency’s use cases have grown since the Enterprise Ethereum Alliance (EEA) was established. EEA boasts an impressive collection of Fortune 500 companies, startups and subject matter experts converging on smart contract research and development. The goal of the Alliance is to “define enterprise-grade software capable of handling the most complex, highly demanding applications at the speed of business.”
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.
Featured image courtesy of Shutterstock.
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