With the cryptocurrency markets still trying to find their new equilibrium, there isn’t much positive momentum to speak of right now. The Bitcoin price tries to mount a comeback, but all of the major altcoins are less successful. NEO is one exception, as the currency is slowly recovering. After the NEO price nearly collapses yesterday, we are now looking at a 13.12% rebound. An interesting development worth keeping an eye on.
NEO Price Attempts to Mount a Comeback
It is never pleasant to see cryptocurrencies lose a lot of value in quick succession. Although most altcoins have nothing to do with Bitcoin directly, their value is still often linked to the world’s cryptocurrency in this regard. This is effectively true for some the less “middle class” altcoins, such as NEO and OmiseGO. The term middle class refers to their position on the charts by market cap, and not the technology under the hood. Both currencies are just outside of the top 10, although that situation can certainly change in the coming months.
That being said, the NEO price took a massive beating yesterday. Whereas most other currencies lost 10% in value or less, NEO went down by over 33%. Given CHina’s regulatory stance on cryptocurrency ICOs, there was a fair amount of panic on the markets. Then again, the PBoC is not planning to ban cryptocurrencies but merely wants to pause all ICO activities until a proper regulation has been put in place. That situation may last weeks, or months, for all we know.
Now that things are settling down a bit, currencies such as NEO have a long road to recovery ahead of them. It seems things are already evolving in the right direction, though, as the NEO price recovered 13.12% in value over the past 24 hours. More specifically, it recovered that percentage in USD value, as well as a 16.03% gain against Bitcoin itself. Both are promising signs for all NEO holders, as well as the people who recently invested in this popular currency for speculative purposes.
With around $142m in trading volume, it is evident the demand for NEO hasn’t dried up just yet. Although it is hard to gauge whether most orders are buys or sells, the upward momentum can push the NEO price back to $25 in the coming days. Although the currency was valued at over $40 not too long ago, it will take some time until this value can be reached again. With Bitcoin still going through wild ups and downs, the future is a bit uncertain for all cryptocurrencies right now.
As one would expect, most of the NEO trading volume comes from the Bittrex exchange. Their NEO/BTC trading market represents 61.1% of all trades for this currency.Additionally, they also have the USDT and ETH markets for this currency, giving this one exchange control over 74.6% of all NEO trades. That is quite a significant amount, although that doesn’t necessarily mean 74.5% of the 50 million tokens in circulation are traded there as well.
For the time being, it looks as if NEO may be the first altcoin to effectively recoup its losses thanks to China’s ICO ban. Whether or not this will have any effect on other alternative currencies – or even Bitcoin – remains to be seen, though. For the time being, a value of $22.42 per NEO is more than fair, although reaching $25 is not entirely out of the question. Slow and steady recovery will be the best course of action for any cryptocurrency right now, that much is evident.