NEO is crushing it today. As such, it warrants further attention. It’s movement on Friday provides a good case study of how to analyze a coin from various viewpoints.
NEO spiked 22% today – an incredible move for a coin with a market cap of $2.3 billion. . The volume is fantastic as well going from $40,000,000 yesterday to $103,000,000 at present. Simply put, this is incredible movement in one day. But the question is, why now?
First, it’s important to understand that there are many factors influencing a cryptocurrency beyond the technical chart. These include both the macro level and micro level.
Macro-level refers to a large-scale view such as social, political, overall coin news as well as market sentiment as a whole. When I first saw the spike I thought that it may be that some news was released in China, or that the Chinese government had loosened its regulations on crypto exchanges. However, as it turns out, the majority of trading volume came from Bittrex. Knowledge is definitely power when researching coins. Here are some of the upcoming events that may be contributing to the NEO spike :
Swissnex China is holding a Blockchain in Fintech event in Shanghai. NEO founder, Da Hongfei, will participate in a panel at the event.
Blockchain startup Onchain will be launching its public platform project in conjunction with the NEO community.
These two events could have important implications for NEO. As we know, China is a major driver of the global cryptocurrency market, so soundbites from the Fintech conference could have reverberations elsewhere in the market. The success of Onchain also has the potential to increase the viability of the NEO project.
In the unregulated world of cryptocurrency there are also pump and dump operations that broadcast to a group of traders when to buy/sell. I won’t go into too much detail, but just keep this in mind. If you’re ever curious about huge movements in the crypto sphere, this may be one possible reason.
In finance, a pump and dump is a form of fraud that involves artificially inflating the price of an asset through misleading sentiment in order to sell it at a higher price in the near future.
This level is about all the little things that happen around a coin that helps drive some of the bigger movements. After looking at the chart and reading the news, I believe this movement is related to either an orchestrated pump and dump group or by insiders that know some major news that hasn’t been announced yet. Go to online forums, telegram chats, slack groups, 4chan, etc and look for signs of a coin moving in one direction or another.
When looking at the NEO chart I noticed the MACD for the 1-day is staying above the 9-day EMA signal for a bullish run. It looks like we have just broken out of a massive wedge. I believe we will bounce down to around $21 before shooting back up to $36 and beyond.
Overall, I believe NEO is a great long-term hold. I think for the short term you missed the spike and will need to wait for it to retest and dip to previous highs before buying.
** Disclaimer: I do not own any NEO. This is my opinion. Please do your own research.
Winter Is Upon Us
Acorn gathering season was cut short, let’s hope you took some profits and got to high ground before the deluge. Even the big Chinese exchanges are ceasing operations. The madness has sent the Bitcoin price running away from $4,000, and in the melee a lot of otherwise solid valuations are taking a beating. The fundamental flaw in how all cryptocurrencies are valued – the amount of bitcoins and thus the amount of fiat – is revealed when the price begins to plummet. People still have faith in all those tokens, after all, they’re just losing value as the market goes.
So what’s the move? If you haven’t sold already, there’s not a lot of recent room left to do it. If it’s something you think you might do, we urge you to make that move sooner than later. Everyone seems to think there will be buying opportunities beneath $3,000 coming up, so re-entry should be possible – and will likely be profitable. Every great dip and depression Bitcoin is followed by an upheaval of massive proportions, we’re not seeing much to tell us this one will be any different.
Spoke to a Hacked subscriber who sold at a profit, but probably late to the profit party. He was upset about some losses. I informed him that if he had losses, they were of the theoretical variety – you don’t have losses before you actually lose the tokens. Unless we’re talking about margin trading, a whole different form of savagery which had its own carnage over the past many days.
The market will have to shake people out now and then. The only players left from China will be those who’ve got the courage left to defy the government. The government itself will find some form of blockchain technology that it blesses and allows to monopolize, and other Asian-born and oriented financial technologies will have to find a way to work around that. NEO has a chance to be one of them, as does Walton. Or both. And more. There’s a lot of room for innovation yet. The Chinese government is probably mostly mad that it has missed out on the opportunity. If anyone was in a position to speculate on the moves of the market, they would have been working in the Peoples Bank of China. Perhaps the initial news, but the market reaction and the subsequent slowness to clarify, that was all very telling in the actions of the Chinese government.
The author can tell you that he will be acquiring more of everything in this down market.
It’s All About The Tokens And How You Play Them
A definite good short-term buy-call is to get your hands on some NEO, because on September 10th, the Red Pulse ICO is going to kick off. When that happens, we’re going to see a spike in the price of NEO, because Red Pulse is only selling for NEO – a sage move, really.
In this article, the author would like to establish that chains like NEO and Ethereum ultimately have no true value on their own. They are required to be valuable to mine order to support valuable applications, and so people are leveraged into paying fair prices for these base tokens. In the case of NEO, those who buy and hold are in the short-term rewarded with GAS, but not as much, perhaps, as can be earned through picking up the RPX token, by comparison.
Therefore, it’s safe to say – it’s all about the tokens and how you play them.
Up to now, the author has really been looking for the next breed of unicorn in the ICO market. But as it turns out, the real truth of it is just something no one wants to acknowledge: while some people will make lots and lots of money long-term in this whole ICO scheme, a lot of others won’t, and still more will have made profit in the short-term.
So we’ve got to take our profits when we can.
That doesn’t mean there aren’t good long-term positions that come up from time to time, and this author will be more keen to point those out when they do appear. But as for now, it would be good to have a daily piece regarding short-term plays. So what do we pick today? Well, today we recommend you invest the time to investigate RPX, Red Pulse, and everything NEO. Because if the revolution will be tokenized, it’s going to take more than one blockchain to do it.
RPX won’t be the last. NEO has enough GAS to give the platform some runway – incentive for people to hold it without just getting rid of it – and so other tokens will follow in the path of RPX. It’s hard to same from here what applications they will represent, but if the other blockchains eventually mirror Ethereum in the long-term, then there will be applications built on NEO intended to disrupt every aspect of the business world. Following that, the government and finally consumer finance. This is the order of things. In the meantime, it’s all about jumping from tree to tree, getting the low-hanging fruits.
NEO Springboards to Top-Ten Cryptocurrency with $2.4 Billion in Assets
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.
- ICO Analysis: Majato December 17, 2017
- Trade Recommendation: Litecoin December 17, 2017
- Trade Recommendation: IOTA December 17, 2017
- ICO Analysis: Rentberry December 17, 2017
- Trade Recommendation: Ethereum December 16, 2017
- Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out December 16, 2017
- Trade Recommendation: OMNI/BTC Range Trade December 16, 2017
- Trade Recommendation: NEM December 16, 2017
- Risks abound with Ethereum and its Application Developers December 16, 2017
- Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading December 15, 2017
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