NEO Predictions: A Worthwhile Investment?

Although NEO is still among the top-100 cryptocurrencies, it’s losing its position. In October 2021, it was ranked as 53rd in market capitalization by Coinmarketcap; the coin is now ranked 62nd as of the beginning of March 2022. The NEO network was launched in 2014 but failed to become one of the world’s leading blockchain platforms.

Everyone naturally wants to know what the NEO price will be in the future. There are many NEO price predictions on the Internet, but which one should you take seriously? It is best to make your own judgment about the potential of NEO. You do not have to follow all predictions indiscriminately. As cryptocurrencies experts claim, it’s quite possible that the price will break through the critical resistance area at $60 again in 2022.

In this article, we’ll take a closer look at the short- and long-term NEO price predictions and, in particular, the predictions for the future. But we’ll also discuss the current NEO coin rate and the historical data of the coin.

The article covers the following subjects:

What Is NEO? 

NEO, in short, is a blockchain project from China founded in 2014. It used to be called Antshares, but this changed later. NEO is also called the Chinese Ethereum because they are strongly committed to creating a smart economy. This means that the developers of the project want to make it easy to use smart contracts on the NEO network.

For a trader to use the NEO network, a second cryptocurrency is used –  namely, GAS. This can be considered the fuel of NEO. One share of NEO is also seen as one share in the network, and the GAS cryptocurrency is used to make transactions on this network.

By saving your NEO in official wallets, it is possible to earn GAS with your NEO. This is due to the proof of stake principle. You simply deposit your NEO coins in your wallet and receive a portion of the GAS spent on the network in proportion to the amount of NEO you own. It is thus possible to generate some kind of passive income for yourself. You can imagine that when the NEO price or the GAS price rises, you will benefit from the price difference on your NEO but also that of your obtained extra GAS.

This is one of the reasons people invest or have invested a lot in NEO in the past. Over the years, as with any project, a lot has happened with the NEO trend. We should add that it’s not possible to mine NEO coins because they were all distributed during the ICO. 

NEO from 2020 to 2022: Some History

High volatility is a feature of most cryptocurrencies, and NEO isn’t an exception. Some historical data will help you build NEO projected values.

#NEOUSD online price chart in the Forex market in real time:

In 2020, NEO was below $10 at the beginning of the year and touched the lowest point of the year of $4 on March 13 (at Bitfinex exchange). Yet, the NEO value managed to jump to $25.90 by September 18. At the end of the year, the NEO/USD pair settled near $14. 

It’s well-known that small cryptos copy movements of BTC/USD. Thus, most of the ups and downs of the NEO/USD pair just repeated Bitcoin’s trends. For instance, the coronavirus hit financial markets in March 2020 the most, resulting in downtrends in the crypto world, pushing Bitcoin and NEO down. 

Still, some events caused divergence in the direction of prices. At the end of July, NEO partnered with the Blockchain-based Services Network. BSN is a global infrastructure that offers a cheap platform for blockchain projects and similar companies, creating a digital economy. This event pushed the NEO rate up. You can see how NEO coin news can affect the price of the cryptocurrency. 

NEO coin has experienced wild volatility spikes in 2021. The year started at the price of $14.25. In the middle of April, the coin showed rapid growth due to Bitcoin’s performance. Also, the reason for such spikes was the release of a newly updated version of the Go node for N3. The main difference from the previous version is that the tracking code now diverts from the implementation in the core C# client. The update has corrected a potential deadlock in nodes that have the optional notary service enabled. Moreover, wallet files are cleaned up properly after keys are removed. Chinese crypto regulation affects the NEO price, too. On April 19, in the early Asian session, NEO skyrocketed as the People’s Bank of China called cryptocurrencies “investment tools.” The country was going to issue new regulations, as stablecoins were turning into payment solutions.

This bullish trend continued to May 7. The cryptocurrency hit a new year-to-date high of $140.77 on May 7, 2021, and fell to $25.03 by July 20, 2021 (Bitfinex exchange). A harsh crash followed, as Bitcoin suffered greatly in the second half of May. 

The price gradually increased from $25.03 on July 20 to its recent high of $62.97 on August 24, growing by over 151% within a month. 

At the beginning of September, the price went up and crossed the $60 mark. However, it didn’t manage to stay this way, and the price correction began.

The long-term downtrend has been in force since September 2021. As of the beginning of March 2022, the NEO price is just near $20. However, the coin has chances to appreciate. 

Inclusion of the NEO-powered Jiuquan Chain in the ten chains that will form the Chinese mainnet is among recent developments that can push the NEO price. This integration grants Chinese citizens access to NFT markets that operate on the BSN Open Permissioned Blockchain and adhere to Chinese regulations. 

Another factor that can push NEO is the successful migration of assets from N2 to N3. Although N3 was launched on August 2, 2021, the network took time to transfer assets to avoid bugs or issues with the process. 

One more reason for the resurgence of NEO has been the successful launch of N3, the most advanced version of the NEO blockchain. 

Another reason for NEO’s rise is the launch of numerous NFT projects on N3. The launch of multiple NFT projects is accompanied by the introduction of several DeFi protocols on N3.

The last NEO all-time high price was 196.85 USD on January 15, 2018. Although the NEO price is too low to reach such highs in the near future, analysts expect the rate to stay near $20 this year.

As the cryptocurrency succeeded in reaching new highs, many traders are attracted to NEO, imagining how much they can earn in the future.

The NEO/USD today’s rate is: $8.58

NEO 3.0 Release and How It Can Affect NEO’s Price

Since we mentioned NEO 3.0 as one of the leading factors that will allow NEO to skyrocket, we should explain this upgrade in detail. The NEO team was working on the project for three years. The Crypto world has been waiting for the NEO 3.0 release since the end of 2020. The launch was postponed several times. However, in March 2021, Neo started rolling out an N3 version of its public blockchain infrastructure. 

NEO 3.0 Preview. NEO tries to attract developers to create decentralized applications on the blockchain. The improved consensus protocol can be used worldwide. The upgrade of the system occurs when the Ethereum network (a major competitor of NEO) is suffering capacity problems. Moreover, China, famous for its strict crypto regulation, claimed blockchain as a strategically leading technology. 

The key points of the N3:

  • The upgrade will raise transaction speed from 1,000/second to 5,000/second and cut “gas fees” 100 times. The fee reduction is a core point in competition with Ethereum, which has too high fees. 
  • A new version will include a decentralized file storage solution and a new governance mechanism. Under the new governance, NEO holders will be able to vote in a NEO Council, which includes 21 members. The Council will control the management of fees, network upgrades, and other operation-based cases.
  • N3 can become a good place to create non-fungible tokens.

Poly Network, a consortium interoperability protocol, is used to facilitate NEO token migration to the new network. The migration with Poly Network will show whether the network works well to create a blockchain from scratch and transfer all the data from the existing chain without errors. 

Here are some of the major elements of the NEO 3.0 network that are supposed to attract developers to the system: multi-language support, native oracles that secure access to any off-chain data, advanced interoperability, decentralized storage, and self-sovereign identity, best-in-class tooling, and a dual-token model. 

In the middle of April 2021, after NEO 3.0 started rolling out, the NEO/USD pair managed to hit $130. It’s a significant rise from 0.0320 USD during the ICO in August 2017. The final release was on August 2, 2021.

NEO Price Prediction for the Rest of 2022 by Crypto Experts

NEO, thanks to its great potential, is a better long-term investment than many other cryptocurrencies. A release of N3 is a springboard for the NEO price. Let’s get a foretaste of the NEO future value by looking at the predictions given by famous crypto traders and reputable publications.

Wallet Investor

Wallet Investor experts don’t see NEO at new highs. Still, in May, the cryptocurrency will be able to rise above $60, reaching the highs of September 2021. The price will be highly volatile, as the minimum rate is expected to fluctuate from $ 0.000001 to $13.70. Until June, the average price will be above $20. However, it will fall below $10 from September to October. By the end of the year NEO will recover but without significant jumps. 

Long Forecast

This famous forecasting agency predicts a downtrend for NEO in 2022. The cryptocurrency will return to $10. The highest level of $25.23 will be reached in March, and the minimum price of $7.53 will be set in October.

MonthOpenLow-HighClose
2022
Mar24.4713.45-25.2314.46
Apr14.4611.30-19.5112.15
May12.1512.15-15.0814.09
Jun14.0911.01-14.0911.84
Jul11.849.25-11.849.95
Aug9.957.85-9.958.44
Sep8.448.44-10.319.64
Oct9.647.53-9.648.10
Nov8.108.10-9.889.23
Dec9.239.23-11.4610.71

CryptoGround

CryptoGround platform forecasts the NEO will experience an uptrend. At the end of the year, the NEO coin may rise to $44.64.

TradingBeasts  

TradingBeasts is conservative about the NEO future. Although the source doesn’t expect a fall, as the average price will fluctuate near $20 throughout the year, there won’t be solid price jumps. The maximum rate of $27.26 will be set in April. 

Coin Price Forecast

The Coin Price Forecast website projects a moderate bullish trend. By the middle of the year, the price will be traded at $29.83; by the end of 2022, it will reach $33.41.  

NEO Technical Analysis

Let’s start the NEOUSD technical analysis by exploring the monthly price chart outlook.

LiteFinance: NEO Price Prediction for 2022, 2023-2025 and Beyond | LiteFinance

This year from May to April, the NEO price reached its peak. After the NEO price sharp rise, now a downward price movement is developing similar to 2018. Decline is accompanied with high volumes, which suggests sellers are interested in reducing NEO price.

Considering the historical case in 2018, when after the strongest growth the price returned to its base, now the projected NEO decline can rush to its historical low around 4 USD (marked with a red line).

NEO price prediction for three months

It is better to make a realistic NEO forecast for the short term on a smaller timeframe.

LiteFinance: NEO Price Prediction for 2022, 2023-2025 and Beyond | LiteFinance

The weekly chart shows the current market situation much better. We can observe that the developing bearish trend has high potential because it is accompanied by an increase of sellers’ activity.

Another indirect sign that the expected fall will continue is the position of the MACD line. In May, it crossed the signal curve from top to bottom, thereby confirming the end of the previous bullish trend. At the moment, the indicator histogram remains in the red zone and there are no signs of a trend reversal.

Most likely, the future price will continue to decline. However, the intensity of the decline will decrease. There is now a break of the trend line and a continuation of the decline at a less acute angle.

A similar market pattern of price movement has already occurred in 2018. In the next three months, there is no reason for any other development. The expected NEO trading range is from 39 USD to 4 USD.

Long-term NEO forecast for 2021

Let’s conduct a technical analysis of the daily timeframe and make a forecast for 2021.

LiteFinance: NEO Price Prediction for 2022, 2023-2025 and Beyond | LiteFinance

On the NEOUSD price chart above, you can see that the stochastic RSI is in the oversold zone. Without confirming signals from the MACD and candlestick patterns on higher timeframes, this signal is weak and, at best, can indicate a decline slowdown and possible consolidation for a short time.

Thus, after analyzing the history of prices using Bollinger bands and following the decline continuation, let’s project trading ranges for each month. As you can see, the NEO price chart will smoothly approach the support level of around 4 USD for most of the specified period.

When this level is reached, the price will most likely rebound and continue to move within a wide channel with a high around $40. Most likely, like three years ago, after sharp surges, the market will go into a protracted consolidation.

The table below shows the detailed NEOUSD price forecast for each month in 2021.

MonthNEOUSD price
LowHigh
October  2021421
November  2021421
December  20211130

Long-term NEO trading plan

Let’s assess the potential of the NEO and make up an optimal cryptocurrency trading plan.

LiteFinance: NEO Price Prediction for 2022, 2023-2025 and Beyond | LiteFinance

Obviously, having such a bearish scenario, it is necessary to consider short sell trades where the target is the support level 4 USD. It is difficult to predict how close the market will get to it, so I would focus on the level of 10 USD (the green line on the chart).

There are two levels for entering a short trade. The first order can be placed at the breakout of the local low around 26 USD  (blue line).

The last high of 39 USD (red line) can be used as a guideline for the stop loss. I would exit a trade with a loss after overcoming the 40 USD mark.

I would enter another short trade near the stop around 37 USD. This approach will allow you to average the position and break even if the market gets stuck in a narrow range. Be sure to consider the risks and do not risk more than 1% of the portfolio for the entire trade.

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