Things have been looking pretty good for holders of the NEO cryptocurrency. Despite a sharp dip late last night, the NEO price is still maintaining a semblance of stability around the US$40 mark. Last night’s dip created an excellent buying opportunity, to say the least. It is evident the NEO price will be affected by a fair amount of market resistance in the coming hours, though.
NEO Rally Isn’t Over yet
While things may have looked a bit bleak for the NEO price when last night’s dip occurred, the market rebounded pretty well soon afterward. Seeing the NEO price drop from US$42 all the way to just under US$37 in a matter of hours wasn’t fun for anyone. Many people hoping to buy in received the opportunity they were waiting for when that dip occurred. After all, the NEO price quickly bounced back to over US$40 in the following 90 minutes.
All of this seems to indicate there’s solid momentum in place right now for NEO. While it remains unclear if this trend can be sustained for a few more days or weeks, there is some good money to be made at this point in time. Even though there is still a lot of volatility as far as the NEO price is concerned, daytraders are making solid money thanks to these fluctuations. Overall, NEO is losing ground against both USD and BTC, though.
To put this latter point into perspective, the NEO price has declined by 3.63% in USD terms since yesterday. That is nothing to be overly concerned about, yet the current Bitcoin price trend will make this gap even wider in the next few hours. The worrisome part is that NEO has been losing ground compared to Bitcoin directly, resulting in an 8.21% decline over the past 24 hours. Altcoins continue to struggle against Bitcoin whenever the latter’s value goes up; that much is certain.
One thing working in favor of NEO is its strong trading volume. Demand for this altcoin remains surprisingly high, as nearly US$300 million worth of NEO has changed hands over the past 24 hours. This volume is larger than some other top 10 cryptocurrencies, even though a lot of people are merely chasing the pump right now. Moreover, once people convert their funds back to Bitcoin, this volume will only grow larger for the wrong reasons.
Bittrex remains the bastion for NEO trading these days. It is the only exchange processing over US$100 million worth of daily volume. Unfortunately, that means this single exchange is responsible for nearly 50% of all NEO trades in the past 24 hours. Bitfinex and Binance round out the top three, but their trading volumes are far more modest compared to that of Bittrex. It’s an interesting scenario well worth keeping an eye on, although no one knows for sure how all this will play out in the long run.
All things considered, NEO will be one of the altcoins facing some uphill battles in the coming hours. With the Bitcoin price reaching another new all-time high, altcoins will eventually start to bleed badly. This will have an effect on the NEO price as well, although it is difficult to predict how this will all play out. Cryptocurrency is attracting a lot of money right now, and Bitcoin isn’t the only currency to be benefiting from this momentum.