NEO, one of the top 20 cryptos of the global market, aims to challenge the top altcoin by market capitalization—Ethereum’s dominance in the market with an interoperable full-stack DeFi platform—Flamingo Finance.
Within four days of its launch, Flamingo has lured over $1.6 billion collateral locked into the protocol, despite facing network issues due to massive traffic on the line. Moreover, the amount booked as collateral is equivalent to more than half of $2.35 billion crypto collateral backed into the top-ranked DeFi projects—Uniswap so far.
Uniswap had received a commendable response after the launch of its UNI token in the market, and with yet another competition, NEO challenges one of the enormous altcoin’s dominance. Alongside, Neo’s one of the most known USPs, i.e., almost zero-transaction-fee model since the beginning, has been the savior.
The very first AMM-based DEX on Neo, Flamingo #Swap goes live. FLM will no longer be distributed to single-asset stakers. Users may stake #LPTokens from below trading pairs in the Vault to continue receiving FLM rewards. https://t.co/zFw5sZvBkj
— Da Hongfei (@dahongfei) October 5, 2020
The native coin’s price dynamics are not favoring the platform’s positive sentiment and is similar to that of any other altcoin in the market, including the major cryptocurrency by market capitalization—Bitcoin. However, in August, when NEO/USD was seen breaching the year-long resistance, the pair has only been drawing a negative bias over the past two months.
NEO Price Analysis
At the time of penning down this analysis, NEO was seen trading moderately below $20 at $16.95, i.e., even below the 38.20% fib level against the US Dollar. During the major market crash in March, Neo price has bottomed out below $5 at $3.93, and with a modest gain in momentum, it strengthened by over 200% in 5 months to trade above $10 at $12.
In August 2020, when the Neo coin started gaining significant traction, it was just then when it breached the yearly resistance alongside, marked a fresh YTD high too, around $25.8. However, since the past two months, NEO has been experiencing a gradual downside correction, and after having lost active support at $20, it lost SMA50 support but still retains SMA200 support at $12.60.
With a gradual dip in price, the price trend is now inclined towards the lower band. Alongside, the bands are seen widening, and therefore we expect volatility in the near-term. The MACD draws a negative crossover and exhibits the current bearish price movement leading to oversold inclined RSI lying at 39.68.