Short term price analysis:
Total market cap behaviour
Before we make an analysis for NEO, let’s do a quick charting of the overall market cap. As we already know, due to the dubious reporting from TheBlock that alleged Binance offices being raided by police, the market suffered a heavy, mini crash and overall capitalization fell below $200 billion.
Right now, the total market is hanging on a thread without a firm support beneath it. We could see a slide all the way down to $162 billion, where we have Fib236 (dec 2018 – june 2019, high low swing) that would act as a support.
Note: Tradingview data that we use in our analysis is off by approx $8 billion to the CMC data on overall market cap.
Overall sentiment is far from being positive and there is a lot of fear in the markets. Strong hands, holders that are buying the dips are probably a bit cash stripped which is a further plus for the bears as these buyers are usually “buyers of last resort” and a drift and loss of another $30 billion is pretty likely.
NEOUSD Price Analysis – 24th November
NEO lost its battle for Fib786 at $9.75 and it is now in a free fall, probably not stopping before crashing at the local bottoms of September and October at $6.70. This means that all the gains NEO made during the China hype back in the beginning of the month are given away and we are back in square one.
Below is our long-term NEO price prediction for 2019 and beyond.
NEO is a hot topic on the Chinese market. But can the crypto currency also penetrate abroad? What is the long-term NEO price prediction? Will an investment in NEO pay off by 2025 and what profit or loss can be expected?
In order to make a NEO forecast, you should know the most important information about the crypto currency, the underlying technology and the company behind the project. Therefore, here is a short summary. NEO was originally founded in 2014 by Da Hongfei under the name AntShares. In June 2017, the platform was rebranded and has since been called NEO. Behind the project is the Chinese company Onchain.
NEO was China’s first crypto currency. However, it does much more than just serve as a means of transaction and payment. Similar to Ethereum, the blockchain-based platform allows developers to create Smart Contracts and dApps. Therefore, many refer to NEO as the Ethereum of China.
NEO price prediction: the main factors to consider
The long-term value of a crypto currency as an investment can be determined by several key factors. The questions that a crypto investor has to ask himself hardly differ from those of another investor. These questions are important for a NEO forecast:
- Does the product serve a purpose?
This question can clearly be answered with yes for NEO. As already mentioned, NEO is not a crypto currency that serves only as a means of payment and would therefore be interchangeable with hundreds of other crypto currencies on the market. NEO can be used in many areas as it supports Smart Contracts and dApps. The project can serve governments, corporations, developers, individuals, and many more. The goal of NEO is to advance the so-called Smart Economy. It is about the possibility to digitize real assets in order to make them digitally tradable with the help of Smart Contracts and dApps. The global economy should benefit from this and become even more efficient, transparent and secure. This point will have a positive effect on the NEO forecast.
- Are there competing products?
NEO has to share the market with some other crypto projects. Among the most important are EOS, Tron and Ethereum. Based on market capitalisation, all three are currently outperforming NEO. Tron is in 10th place with over US$ 1.2 billion. EOS has almost twice as much with US$ 2.9 billion and occupies 6th place. However, the unbeaten industry winner is Ethereum with almost US$ 19 billion. Ethereum can therefore probably be described as the biggest competitor.
- How mature is the technology?
Although the Ethereum Blockchain leads the ranks of smart contract providers, NEO (currently) has the better technical fundamentals. The NEO blockchain handles about 10,000 transactions per second, compared to only 15 transactions per second for Ethereum. NEO has the better consensus mechanism with the delegated Byzantine fault-tolerant (dBFT) consensus algorithm. This consensus method is similar to Proof-of-Stake (PoS) and significantly more energy efficient than Ethereum’s Proof of Work. In the long run, however, Ethereum will be able to catch up on this point once it has switched to PoS.
While Ethereum uses its own language for Smart Contracts called Solidity, NEO allows developers to write in popular programming languages such as C#, Java, Phyton and Go. This makes it easier for developers to get started, since they don’t need to learn a new language. The prospect of NEO 3.0 is promising for further technical development and will make the platform even more powerful, stable and user-friendly.
Who are the partners and supporters?
NEO has the great advantage that it is allegedly in good graces of the Chinese government. Most crypto projects do not have this luxury, but have to deal much more with constraints and restrictions. Other important supporters of the open source blockchain project are Alibaba and Wings. This has made NEO one of the most successful and widely used crypto projects on the Chinese market. But the company doesn’t stop there and wants to go global.
Last year, NEO tried to build bridges in both Europe and South America. NEO founder Hongfei, for example, spoke at the Economy Expo in May 2018 before the EU Parliament about blockchain technology and its advantages. The team held various hackathons, meetings, conferences and many other events across Europe and for the first time in Brazil. If the company makes the entry here, this could have a decisive influence on the NEO forecast.
Long term NEO forecast for 2020 – 2025
Now that the most important points point to a price increase or decline, a long-term NEO price prediction in numbers follows. With a forecast, there is no guarantee that it will actually come true. The following forecasts differ because they are based on different analysis methods:
Walletinvestor: This forecast platform uses technical analysis for its NEO forecast. According to their assessment, NEO is a bad long-term investment. According to the calculations, the average price could be around US$0.91 by the end of 2020. Apart from some minimal fluctuations, the price will also develop negatively in the coming years. In 5 years, i.e. July 2024, 1 NEO will be worth only US$0.44. Compared to the current price of around US$11, investors would lose over 87% of their investment.
Coinswitch: The NEO forecast in this case is based primarily on the above questions and bases its assessment on current news and future developments. Therefore, Coinswitch considers NEO to be a solid and promising investment. The expansion on the Asian market, the support of the Chinese government and the 3.0 update could raise the NEO price to US$ 274.8 by the end of 2020. Due to the high scalability and untapped potential of the platform, as well as the potential growth by institutional investors, the price will continue to rise until 2023. Then 1 NEO could be worth up to US$ 437. This trend will continue and by 2025 a value of 533 would be feasible, the estimate is.
Longforecast.com: According to longforecast.com, the price of NEO will be in the range of $284 to $328 in May 2020 and rise to $438 to $504 by December 2020. The NEO Coin price forecast looks quite good here and predicts that an investment of 100 dollars today could yield around 600 dollars in 2020.