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NEO may not be the most well-known cryptocurrency, but it’s one to keep an eye on. NEO is a digital platform for decentralized applications that can run smart contracts. That means NEO can act as a digital asset exchange, a distributed storage system, and a content distribution network.
NEO has been falling since May 7, 2021, when it peaked at $246. The decline continued until Jan 24, when $16.13 was the local low. The price was horizontally maintained at $17.20 for the week of January 24-31. This level was resistance since April 2019 and served before January 2021’s breakthrough.
However, the gains were short-lived as NEO was once again close to the $17.20 mark. It has fallen by 86 percent since the previous all-time high. NEO has traded below a daily support line since Sept 1. It broke below the $26.50 horizontal support area on Jan 5 and confirmed it as a resistance zone (red icon) on Feb 18. If the current trend continues, a drop below $13.50 is possible.
The daily period indicator indicates a downward trend. NEO has fallen from the upward support line on two-hour charts. The trend remains negative until it is regained. Even if an upward movement would validate this line, the trend will remain negative.
Ever since the NEO team launched its platform in 2017, the team has been implementing updates to create a more efficient operating system for blockchain apps. One of these updates is called NeoX, which is meant to replace the current “proof of work” consensus mechanism with “proof of stake.”