A general rule of thumb is that a rising Bitcoin price will have an effect on alternative cryptocurrencies. In most cases, altcoins will fall in value when Bitcoin rises. Right now, that is exactly what is happening to most currencies, even though losses are being kept to a minimum. The NEO price is slowly trying to reach US$30 again, although there is still plenty of work to be done in this regard.
NEO Price Shows Signs of Upward Momentum
After a pretty volatile week, the NEO price is finally starting to form a stable floor. That is a positive sign, even though the NEO price had successfully hit US$32.52 not long prior. After that price was hit, it didn’t take long until the price started to retrace. Given the Bitcoin price momentum at that time, it isn’t entirely surprising to see an altcoin such as NEO losing a bit of steam as well.
Although things have not evolved in a negative manner per se, the NEO price has struggled to find a stable floor. With the value falling from US$32.50 to US$28.35 in short order, it was evident something had to change sooner or later. Thankfully, it seems the floor has been found for the time being, and the uptrend may very well be resumed in the days to come. At the time of writing, one NEO is worth US$28.50, which isn’t too shabby.
Moreover, it seems NEO’s market capitalization has set a new all-time high as well. Its market cap has risen by over US$400 million all of a sudden, although this is not due to the price per NEO having risen significantly. Rather, the circulating supply has increased by 15 million coins, which explains the change in market cap quite easily. It is unclear why these coins were brought into circulation right now, though.
The NEO trading volume isn’t changing all that much by any means. Then again, we have seen the volume dip down to the low US$30 million mark on more than one occasion. These past 24 hours haven’t been much different in this regard, as the trading volume is sitting at just US$33.5 million. That’s not exactly spectacular, but NEO has proven time and time again that a high trading volume isn’t required for the price to go up. It will be interesting to see how that situation evolves, though.
The leading markets for NEO are on Binance, Bittrex, and Bitfinex, in that order. It is significant to see Binance and Bittrex being the only two platforms to generate over US$10 million in 24-hour volume. The gap between them and Bitfinex is almost US$8 million, which is rather steep. Considering that the NEO/BTC trading markets are suddenly all the rage, it is evident there may be some more NEO price volatility moving forward.
All things considered, the NEO price appears to be in a good place right now. However, the introduction of 15 million additional tokens will raise a lot of questions and increase volatility as well. It will be an interesting market to keep an eye on, as speculators may make a good amount of money by flipping coins back and forth. The future still looks pretty interesting for NEO as a whole, though.