Dead or Alive? NEO (NEO) Looks to Bounce Back After Tough Month of August
NEO's performance in August ranks as the worst among the top 25 cryptocurrencies on performance tracking site XBT.net.
NEO’s performance in August ranks as the worst among the top 25 cryptocurrencies on performance tracking site XBT.net.
The coin’s price over the month is down by over 39.6 percent to leave it grappling with a tough climb towards price recovery.
Of course, the general bloodbath witnessed in the market over August has left many coins deep in the red over 30 days of trading.
Bitcoin (BTC) is down by over 10 percent in the last one month while Ethereum (ETH) is 32 percent in the red over the same period. EOS declined by 8 percent; Litecoin 20 percent, and Ripple (XRP) 25 percent.
The bearish market saw the global crypto market valuation lose over $100 billion in the first two weeks of August. It meant that the total cryptocurrency market capitalization dropped below $200 billion, the first time it had happened since January.
The last two weeks have seen an upturn in crypto prices, with sentiment heading north as most coins trade in the green against the US dollar. At the moment, the overall market cap has risen to $231 billion, gaining over $40 billion since mid last month.
While it is possible that the market will see sustained upsides going into Q4, NEO’s individual performance will determine whether it can recoup all the losses suffered in August within the first half of September.
NEO monthly performance
NEO, which currently is ranked 14th in the world by market cap, has mirrored the wider crypto market in its performance for much of the year.
The early August price massacre occasioned by a dampened market sentiment and the U.S Securities and Exchanges Commission’s (SEC) rejection of several Bitcoin ETFs affected NEO’s price as it did the rest of the digital assets.
NEO’s decline really did not begin in August. Data on CoinMarketCap shows that the coin struggled in July, losing nearly 30 percent of its value that month. A slight pullback did not result in sustained momentum, despite the price hitting oversold conditions
The NEO/USD pair traded at $32 on July 31 but saw its price tank continuously over the next two weeks. By August 14, the token exchanged hands at a low of $14.
The decline between August 1 and August 14 represented a depreciation of over 50 percent in two weeks.
An upturn that began on August 15 has seen its price gain considerably to close at $20.04 on August 31.
The price appreciation for the last two weeks represents gains of over 35 percent. However, that has not been enough to offset the earlier losses that have left NEO down by 39.6 percent.
The market outlook for NEO, as it is for most other coins, remains strong in the near-term. The current momentum seems to be holding as Bitcoin (BTC) just crossed back over $7,000 with substantial gains.
For NEO, the recovery above August 14 lows has been an encouraging run, but the bulls need to sustain the pressure until they break above July 31 prices of $32 against the US dollar.
A break above that price level, which is the current key resistant area, will mean the coin has hit a bottom. It will signal the potential for further upsides, buoyed by the massive buying pressure witnessed when the coin’s price reached a low of $14.
Another rally like that seen in the last two weeks, of over 35 percent price increase will encourage the buyers to consolidate. At a current market price of $21.46 against the US dollar, NEO is competitively priced to see the entry of more bulls.
If prices break above its key resistance area, it could open up a run to its 5-month support levels at $50. On the flipside, a decline towards the recent lows would return the coin to a long-term bearish trend.