NEO / USD Forecast Summary
|NEO forecast: H2 2021
Price: $ 80- $ 100
Price drivers: cryptocurrency market, Ethereum prices, crackdown on cryptocurrencies
|NEO forecast: 1 year
Price: $ 130- $ 200
Price drivers: Increased acceptance and use, cryptocurrency market, war on cryptos
|NEO forecast: 3 years
Price: $ 600- $ 800
Price drivers: global crypto politics, new developments from NEO, crypto market sentiment
Like Ethereum, Neo is a cryptocurrency and blockchain platform that can build a scalable network of decentralized applications. Neo Coin, written by Da Hongfei and Erik Zhang, declares itself to be a distributed network for an intelligent economy. The interesting thing that makes NEO unique is the extreme 12-month price development, just like with Stellar and Bitcoin. In May 2020, Neo was trading at $ 10, and in May 2021, Neo hit its second high at $ 147.75, which was still below the January 2018 high of $ 207 and now, in mid-August, Trading around $ 55 will crash.
Neo Coin hit lower lows after the crash through late July, when it bottomed at $ 25. Although sentiment in the crypto market has since improved, with Neo more than doubling its value, climbing over $ 50. Moving averages helped with larger time frames and NEO / IUSD bounced off them, with sentiment remaining bullish.
The emergence of new cryptocurrencies and blockchain apps gained momentum in late 2020 and the early months of 2021, largely due to the race to shift the centralized economy and governance towards decentralization. This trend was first started by Ethereum and has been followed by many cryptocurrencies and blockchain projects by hosting various dApps and smart contracts. Neo Coin (NEO), originally known as “AntShares”, has grown in popularity for hosting smart contracts and dApps. It is said to be a direct contender for Ethereum and is also known as the Chinese Ethereum or Ethereum Killer, although it failed to hold profits during this Chinese government’s crypto crackdown. Another feature that makes NEO more attractive is that, unlike Ethereum, it pays dividends to its owners. Neo also registers physical assets through a digital identity, which means the new coin has some features that made it popular in a short period of time.
Recent NEO / USD price changes
|period||Change ($)||Change (%)|
|6 months||+15.52||+ 37.8%|
|1 year||+45.13||+ 413%|
|3 years||+23.33||+ 54.2%|
NEO live chart
Neocoin (NEO) price prediction for the next 5 years
One thing that has given Neo an edge in the race among emerging digital currencies is the price increase similar to that of Bitcoin. The king of cryptocurrency BTC rose from $ 7150 to $ 64,000 in one year. If we look at Neo’s price fluctuations over the same period, the new coin has gained almost a similar percentage as Bitcoin. During the 12 month period ending May, Neo gained + 755% and Bitcoin gained approximately + 795% over the same period.
If you compare the prices of Neo Coin with its rival Ethereum, the second largest cryptocurrency is currently ahead. In April 2020, the Ethereum coin was trading at $ 174; However, in mid-April 2021, the coin hit $ 2,300 and gained about a 1,220% increase in price and the increase continued through May. Ethereum has seen a significant price spike over the past 12 months and is the only currency that has rallied that much over this period. Neo also offers dividends to neo holders that it pays out on its other cryptocurrency called GAS, while Ethereum does not offer dividends.
The Ethereum blockchain only uses one programming language, Solidity, which makes it less user-friendly as programmers have to learn it from scratch. The unique property of being a multilingual blockchain gives Neo an edge over Ethereum and can raise its prices in the near and long term future. According to Coinmarketcap (mid-July 2021), Neo Coin ranks 42nd by market capitalization at $ 1.981 billion; Still, it can handle more transactions per second (TPS) than the world’s second largest cryptocurrency, Ethereum, which at one point in May has a massive market cap of $ 392.86 billion. Ethereum’s blockchain can only process 15 TPS while the Neo blockchain can process 10,000 TPS. Another interesting thing that Neo has an advantage on is that many Neo transactions are free, unlike Ethereum, which has enormous gas fees. It is also known as the blockchain for riches.
Neo and Ethereum both differ significantly in several ways, from scalability and technology to their philosophy. Still, both coins support smart contracts and decentralized apps, and both projects have boosted the cryptocurrency market due to their increasing popularity. As there is a lot of scope for smart contracts and dApps in the recent and coming era, the demand for blockchain platforms that support these projects will also increase, which will help lower the prices of Neo and other similar digital assets in the future to soar.
Factors Affecting NEO Prices:
Chinese government – NEO is also known as the Chinese Ethereum and is also China’s first blockchain network. During the 2017 cryptocurrency boom, China and Korea played an important role in driving their prices higher. Before that, around 75% of Bitcoin trading came from China. The Chinese government was not happy with this and wanted to maintain tight controls that resulted in strict regulations in the cryptocurrency market in China. China continued such measures in 2021, lowering the crypto and neo market through August, but sentiment has improved and this market has rallied after that.
Neo is also known as China’s official cryptocurrency as it has received government support for complying with regulations. Given China’s sizeable population, the share of Chinese investment in the cryptocurrency market is considerable. The Chinese government has already been cautious, and any sanction or regulation imposed on another cryptocurrency could put NEO in the spotlight. Any positive decision by the Chinese government and people in favor of cryptocurrency will drive NEO adoption and prop up its prices.
Competitors– Neo, also known as the Ethereum Killer or an Ethereum upgrade, poses a threat as it faces stiff competition from Ethereum. Both projects are of a similar nature and offer a platform for smart contracts and dApps; they have built up stiff competition. Also known as the queen of cryptocurrencies, Ethereum has maintained its position as a strong coin in the market. In contrast, NEO is comparatively newer and has a long way to go. Therefore, the rising prices of Ethereum due to the high level of competition can lead to a downward shift in the prices of NEO and vice versa.
Hard cap supply – In any market, the prices of products are determined when supply and demand meet. Scarcity drives up the price of a commodity. Unlike other goods and services, cryptocurrencies are unique in that they come with a limited supply. The limited supply of coins brings out the element of scarcity and drives the prices of the coins up. The supply of NEO is also limited to 100 million coins, of which 70.5 million NEO coins are already in circulation. This means that there are only about 25 million NEO tokens left and NEO is therefore in short supply. Over time, this scarcity will only increase as the supply cannot be changed and the limited supply feature will be a factor driving NEO coin prices so high.
Non-financial applications – The NEO blockchain platform can build a myriad of applications, such as: B. Identity theft prevention, supply chain monitoring, and many others. These applications use the NEO token as their in-app currency by default. Any further development of this aspect of the platform could add a lot to the demand for NEO tokens in the future. Neo is also used for digitizing physical assets and verifiable digital identities, bringing these markets to the crypto world.
Bitcoin – For better or worse, Bitcoin is still considered the king of cryptocurrencies due to its largest share of the cryptocurrency market. And it can still often affect most of the market. Bitcoin and NEO-Coins have a correlation of 0.77, which means that Bitcoin has a huge impact on NEO-Coins and can drive up its prices. If Bitcoin moves on a bull run, other cryptocurrencies, including NEO, will follow suit. Similarly, if Bitcoin goes bearish, the NEO coin and many other cryptocurrencies will go down with it.
Technical Analysis – NEO / USD is forming bullish reversal patterns in all time frames
On the technical front, Neo has been trading in a bullish trend since late July and has moved above all moving averages today and above $ 60 today. The 200 SMA (purple) acted as resistance on the daily chart after previously acting as support during the May and June decline. The 20 SMA (gray) also pushed the price down, but now all the moving averages on the daily chart have been broken.
NEO / USD Daily Timeframe – Moving averages have been broken
The weekly chart also supports the idea of a bullish reversal. After the 100 SMA (green) fell for two months, it stopped twice as a support and did not give up. One of the July candlesticks formed a pin which is also a bullish reversal signal, aside from the fact that the stochastics were grossly oversold. The just released 200 SMA (purple) also added $ 25 as support to the 100 SMA. Now the price has flipped up as the graph shows, but buyers need to take out the 20 SMA, which shouldn’t be too much of a problem given the price movements of the past few weeks.
NEO / USD Weekly Timeframe – Given the 20 SMA
The monthly chart also looks bullish for the last two months after the surge and crash earlier this year, which looked similar to the reversal in 2018. This time the previous high was broken, but New crashed, as did the entire crypto market. The 20 SMA (gray) served as a support again after the end of last year. Again, the stochastic indicator was oversold, also indicating a bullish reversal, so the reversal seems to be underway after the hammer candle in July and the bullish candle in August.