It was somewhat to be expected that NEO would see massive growth based on half-truths and rumors. A lot of people are excited about future ICO projects being hosted on this network. However, it remains to be seen if this particular ecosystem will be exempt from Chinese regulation. Until we receive official confirmation on that front, the NEO price may continue to go down. Overnight, it dipped from US$42 to US$36, and the volatility is far from over.
NEO Price Starts Tumbling Down
No one should be surprised to learn the NEO price is coming down to normal levels once again. Although there was a nice pump yesterday, most of the “news” was based on speculation and rumor rather than on fact. As of right now, there is no indication that the Chinese government will not scrutinize NEO-based ICO projects. There is no indication that it will do so either, but it is safe to assume there will be some form of regulation sooner or later.
As a result of this uncertainty, the NEO price has shot up like a rocket over the past 48 hours. Even last week, we saw the NEO price spike to over US$45 out of the blue before eventually calming down. The past two days saw similar movements, although the price never surpassed US$45 again. NEO is currently seeing substantial losses against both BTC and USD, which was only a matter of time. Without credible proof, there is no reason to push up this token’s price whatsoever.
These past 24 hours have resulted in the NEO price slowly slipping from US$42 all the way down to US$34. There have since been attempts to regain control at the US$36 level, but none of those efforts have been successful so far. Instead, the NEO price is struggling for control and may continue to dip under US$35 for a few more hours. Some people may see this as a new buy opportunity, although it remains to be seen how high the price can climb again.
NEO still has a substantial amount of trading volume to help things move along. More specifically, over US$237 million worth of NEO has changed hands in the past 24 hours. That is a pretty large number, especially considering that most altcoins among the top 10 are struggling to break US$100 million right now. Then again, more trading volume can also result in more volatility. It seems this is mainly affecting the NEO price right now, although some other top cryptocurrencies have gone into the red as well.
As is pretty much always the case with NEO, the majority of trading volume is originating on Bittrex. Its BTC and USDT markets are keeping the NEO price afloat right now, as it represents nearly 50% of all trades made since yesterday. Bitfinex and Binance round out the top three exchanges, but have far less volume than Bittrex. It is interesting to see the demand for this currency always originate from the same exchanges, despite having no less than 41 tracked trading markets listed on CoinMarketCap.
With a 12.8% loss in USD value and 14.2% decline against Bitcoin over the past 24 hours, things are not looking all that great for the NEO price. It is possible the value may drop as low as US$30 overnight, but there may be a brief uptrend as well. Given the severe volatility of this particular market, no accurate predictions can be made at this point. It is a goldmine for day traders, though; that much is certain.