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Will NEO Rise Or Crash Amidst Bubble Burst Talk?

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NEO

NEO, the Chinese Ethereum, is making a push for the $40 mark after coming under pressure in recent trading sessions. Things took an unexpected turn late last month, after the cryptocurrency came under immense selling pressure, on touching record highs of $48.

Short sellers took advantage of a lack of interest from buyers and pushed NEO to lows of $22. The cryptocurrency has since bounced back and is currently trading at a key resistance level. A close above the $40 mark could see the digital currency making a push for the $48 mark.

NEO Chart

NEO Chart Courtesy of coinmarketcap.com

The recent pullback appears to have created a buying opportunity for buyers who have been on the fence about pursuing investments around cryptocurrencies. It awaits to be seen if the momentum is strong enough, to push NEO above the key resistance level.

There is solid momentum as NEO continues to trade at the $40 range. However, it is unclear if it can be sustained for a few days or weeks given the level uncertainty in the sector. The worrisome part now is that the cryptocurrency has been losing ground compared to Bitcoin.

Things could go south given that cryptocurrencies have come under pressure in recent trading sessions. Trading volume in most cryptocurrencies has taken a hit as price saturation fears continue to grip the sector

NEO’s 24-hour trading volume currently stands at about $92.4 million. It is not the highest when compared to Ethereum and bitcoin. However, the cryptocurrency continues to outperform a number of other cryptocurrencies.

NEO’S solid performance mostly has to do with its listing in Bittrex which is well in front of Bitfinex and Binance when it comes to trading volume.

 Cryptocurrencies Bubble

Concerns that a bubble burst could be in the offing in the cryptocurrency sector is one of the reasons why most cryptocurrencies have come under pressure in recent trading session. NEOs founder Da Hongfei has already admitted to their being a bubble in the sector.

“I would say that there is a bubble in this industry, but would say it’s OK,” he explained on the network’s Capital Connection segment. Every technology that is so disruptive – there’ll definitely be bubbles, like the train or the automobile,” said Mr. Hongfei.

The sentiments follow the rapid rise in bitcoin price to record highs of $11,000. The breathtaking rally has already aroused concerns that the cryptocurrency is overvalued and that prices could collapse soon. According to Hongfei, a collapse will not be entirely bad given that most cryptocurrencies are likely to come back bigger.

JPMorgan CEO, Jamie Dimon has predicted that bitcoin will rise to $20,000 before bursting and losing its value. The sentiments have consistently affected investor sentiments on various cryptocurrencies seen by unusual price spikes on huge volume.

Investors have already gotten a taste of what it could be like in case of a crash. A ‘flash crash’ on one of the worlds largest cryptocurrency exchange left investors demanding for answers. The prices of NEO, OMG, and ETP fell 90% last week underscoring how things in the sector can go south anytime.

The price crash forced Bitfinex to close positions of many traders who had placed leveraged trades as a way of preventing further losses. NEO investors among others took to Twitter, Reddit, and Medium to air their distress. The crash highlighted the high-risk nature of cryptocurrencies that have seen their market value balloon $300 billion this year alone.

 NEO Demand

One thing that is working for NEO amidst the level of volatility in the industry is its trading volume. Demand for the Altcoins is extremely high compared to others. Nearly $300 million worth of NEO coins has already exchanged hands, larger than a majority of the top 10 cryptocurrencies.

Taking into considerations the trading volume, NEO will be one of the Altcoins facing an uphill battle as fears continue to grip the cryptocurrency market. With Bitcoin hitting new record highs, a similar performance is also expected of NEO. Any upheaval on bitcoin upward momentum could spill over affecting the Altcoin as well.

 Analysts Take

NEO is most of the time compared to Ethereum because it has the potential to compete with the second most popular cryptocurrency. If the performance of Ethereum and bitcoin is anything to go by, then NEO could double in price.

It is only in the summer that it was trading for pennies. Between July and mid-August, its price jumped 500% an indication of what could be at stake as long as the momentum continues to build on cryptocurrencies. NEO with its blockchain technology can handle up to 1,000 transactions per second which can be optimized to over 10,000. In contrast, Etherum can only handle 15 transactions per second.

If no unforeseen upheavals disrupt the current momentum, NEO could rise to highs of $120 according to analysts. However, the upward momentum is highly susceptible to changes in Chinese regulations whose impact have already been felt in the past.

We will be updating our subscribers as soon as we know more. For the latest updates on NEO, sign up below!

Image courtesy of Dennis Jarvis via Flickr

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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