The Neo (NEO) price is in focus as the cryptocurrency slips despite a broader market rebound, and as it tests a key medium-term uptrend.
NEO was last changing hands just above $16, having traded as low as $15.35 on Wednesday.
Neo is a smart contract blockchain that was launched back in 2014, before rebranding to the name Neo in 2017.
As per CoinMarketCap, its market cap was last just over $1.1 billion.
Despite its age, Neo has failed to catch on like other smart contract blockchains like Ethereum.
Indeed, it has never been able to recover to the record high it hit near $200 in 2018.
At the peak of the 2021 bull run, it only managed to briefly surpass $140.
At current levels, it remains close to 90% down from these highs, and 92% down from its 2018 highs.
NEO’s lack of adoption is evident when examining the trade value locked (TVL) in its smart contracts.
As per DeFi Llama, its TVL was last only $63 million, giving it a paltry ranking of 62nd in crypto.
A low TVL suggests the blockchain has failed to develop sufficiently useful/attractive DeFi protocols to attract investors.
That a chain with such weak adoption can achieve a market cap of over $1 billion shows how irrational crypto markets can be.
But Neo might not have a $1 billion market cap for long. Indeed, the Neo price appears to be on the verge of a bearish technical breakout that could see it quickly shed 40% of its value.
Neo Price Prediction – Can NEO Reach $20?
NEO has been moving higher according to an uptrend since the January lows.
But this uptrend looks like it’s about to break. And that could open the door to a drop all the way back to $10.
Broader crypto market conditions could well remain bearish in wake of Bitcoin’s recent drop under $60,000.
Spot Bitcoin ETF demand has flipped net negative, with the ETF experiencing outflows for the past five days.
Notably, BlackRock saw its first day of outflows on Wednesday. Outflows come as markets price out near-term rate cuts from the Fed.
Yesterday's $BTC spot ETF saw a staggering $563 million net outflow.
Grayscale $GBTC lost $167 million in a day.
BlackRock ETF $IBIT faced its first net outflow of $36.93 million.
Did BlackRock make a costly move, buying at $73K and selling at $57K?
pic.twitter.com/6upAEwAUPK
— Kyledoops (@kyledoops) May 2, 2024
The Fed emphasized that its too early to be cutting rates on Wednesday. That’s due to recent upside surprises in the inflation data, and amid ongoing strong growth.
Rate cuts aren’t now expected until late Q3/Q4 this year. Post-having tailwinds, a more positive macro picture and potentially post-election bullishness could then come in to lift risk appetite.
But until then, cryptos like NEO could continue to perform poorly.
Can NEO recover to $20? Well, in time and as sentiment improves, that shouldn’t be hard.
Given the current token supply of 70.5 million, NEO’s market cap would only be $1.4 billion at this price.
Irrationality could yet see NEO pump back towards its previous record peaks above $100.
But traders should remember, NEO is a risky bet. Despite being around now for 10 years, it hasn’t shown any real signs of adoption.
Its unlikely to become a big success story any time soon.
Crypto Alternative to Consider – WienerAI (WAI)
Investors tempted to jump into a risky, speculative coin like NEO obviously have a high-risk tolerance.
This appetite towards risk might be better served with a different strategy that, while also risky, has higher upside potential.
The strategy in question is presale investing, which involves buying the tokens of upstart crypto projects before they gain traction.
Presale investing is risky because projects can fail to deliver on their promises or achieve adoption.
But if investors are able to reliably identify high-potential projects, they can bag big gains.
A fun new AI meme coin called Wiener AI (WAI) has caught the attention of analysts at Cryptonews.
WienerAI IS CLEARED FOR LIFTOFF!
Get Presale Here: https://t.co/g0LrikQz90 pic.twitter.com/fy7xF5DtKP
— WienerAI (@WienerDogAI) April 22, 2024
The Sausage dog-themed meme coin offers a suite of handy AI trading capabilities and has already raised over $800,000.
Interested investors need to move quickly, as when the presale reaches $1.1 million, the WAI price will rise.
Currently priced at $0.000703, investors are buying WAI at a market cap of around $45 million.
But investors could be looking at gains of 10x or more if WAI can become a market leader.
Not only is WAI an exciting meme coin with AI capabilities, but its also a passive income gem.
How it feels to Stake $WAI. pic.twitter.com/IpkkxWHh8J
— WienerAI (@WienerDogAI) May 1, 2024
20% of the supply has been allocated to staking rewards. Presale investors are currently earning a massive 1091% APY.
At this rate, investors can double their initial presale investment in under one month.
Buy Wiener AI Here
The post Neo Price Prediction as NEO Token Slips 2.3% Despite Market Rebound – Can NEO Reach $20? appeared first on Cryptonews.
