With the cryptocurrency markets still trying to find their new equilibrium, there isn’t much positive momentum to speak of right now. The Bitcoin price has been trying to mount a comeback, but all of the major altcoins have been less successful. NEO is one exception to the pattern, as the currency is slowly recovering from yesterday’s losses. After the NEO price nearly collapsed yesterday, we are now looking at a 13.12% rebound. This is an interesting development worth keeping an eye on.
NEO Price Attempts to Mount a Comeback
It is never pleasant to see cryptocurrencies lose a lot of value in short order. Although most altcoins have nothing to do with Bitcoin directly, their values are still often linked to the world’s largest cryptocurrency in this regard. This is especially true for some of the less middle class altcoins, such as NEO and OmiseGO. (The term middle class refers to their position on the charts ranked by market cap, and not the technology under the hood.) Both currencies sit just outside the top 10, although that situation could certainly change in the coming months.
That being said, the NEO price took a massive beating yesterday. Whereas most other currencies lost 10% in value or less, NEO went down by over 33%. Given China’s new regulatory stance on cryptocurrency ICOs, there was a fair amount of panic in the markets. Then again, the PBoC is not planning to ban cryptocurrencies but merely wants to pause all ICO activities until proper regulation has been put in place. That may take weeks or months, for all we know.
Now that things are settling down a bit, currencies such as NEO have a long road to recovery ahead of them. It seems things are already evolving in the right direction, as the NEO price recovered 13.12% of its USD value over the past 24 hours, as well as a 16.03% gain against Bitcoin itself. Both are promising signs for all NEO holders, as well as for the people who recently invested in this popular currency for speculative purposes.
With around US$142 million in trading volume, it is evident the demand for NEO hasn’t dried up just yet. Although it is hard to gauge whether most orders are buys or sells, the current upward momentum could push the NEO price back up to US$25 in the coming days. Although the currency was valued at over US$40 not too long ago, it will take some time until that value can be reached again. With Bitcoin still undergoing wild ups and downs, the future is a bit uncertain for all cryptocurrencies right now.
As one would expect, most of the NEO trading volume comes from the Bittrex exchange. Its NEO/BTC trading market represents 61.1% of all trades for this currency. Additionally, Bittrex also has USDT and ETH markets for this currency, giving the exchange control over 74.6% of all NEO trades. That is quite a significant amount, although that doesn’t necessarily mean that 74.5% of the 50 million tokens in circulation are traded there as well.
For the time being, it looks as if NEO may be the first altcoin to effectively recoup yesterday’s losses thanks to China’s ICO ban. Whether or not this will have any effect on other alternative currencies – or even on Bitcoin – remains to be seen, though. For the time being, a value of US$22.42 per NEO is more than fair, although reaching US$25 is not entirely out of the question. Slow and steady recovery will be the best course of action for any cryptocurrency right now; that much is evident.