NEO Market Update: NEO/USD skyrockets as China integrates NEO in Blockchain-based Service Network

NEO network will be integrated with the Chinese state-backed blockchain.
NEO/USD jumps by over 6% on a day-on-day basis amid positive news.

Tanya Abrosimova Independent Analyst

NEO is the 21st largest digital asset with the current market capitalization of $787 million and an average daily trading volume of $285 million. The coin is most actively traded on Binance and OKEx against USDT and BTC. At the time of writing, NEO/USD is changing hands at $11.42. The coin has gained over 6% in the recent 24 hours and stayed mostly unchanged since the start of the day.

NEO integrated into Chinese Blockchain-based Service Network

China proceeds with its plan to become the global infrastructure provider for blockchain solutions. Starting from August 10, the developers of six private blockchains - Tezos, NEO, Nervos, EOS, IRISnet and Ethereum - will be able to build their apps and run nodes on the Chinese state-backed Blockchain-based Service Network (BSN). The country confirms its policy of aggressive expansion with emerging technologies, including 5G and Artificial Intelligence.

The public blockchains will benefit from BSN’s cheap services and interoperability corporate blockchains integrated with the ecosystem. Moreover, they will get access to financial data from China UnionPay.

We’ve taken a lot of thoughts about who would be the first public chains to be integrated. Besides Ethereum and EOS we have disclosed in April, we decided to include another international public chain Tezos, and two prominent China-originated projects NEO and Nervos, Yifan He, CEO of Beijing Red Date Technology, commented.

NEO/USD: Technical picture

NEO/USD topped at $11.52, which is the highest level since June 11. While the coin has retreated to $11.40 by press time, it is still above the critical support area created by psychological $11.00 and $10.70 (50-hour and 200-hour SMA, the lower line of the 1-hour Bollinger Band). If it is broken, the sell-off may be extended to $10.00.

On the upside, a sustainable move above Tuesday's high of $11.52 is needed for the upside to gain traction. The next resistance comes at $12.00 and $13.82, which is the highest level since June 2.