NEO network gets ready for a major update; NEO/USD remains bid

NEO announced the MainNet upgrade, scheduled on June 3. The new update is expected to improve the network stability as all consensus nodes on NEO platform will be moved to neo-cli v2.10.2 with the optimized dBFT 2.0 consensus algorithm, according to the announcement.

"In order to improve network stability, the Network Fee mechanism will also be adjusted. The main change is the addition of an Oversize Fee that will be charged relative to size on transactions larger than 1024 bytes," the developers wrote in the blog post.

The developers explained that the fee changes would not affect ordinary users that perform regular transactions as the primary aim of the changes was to prevent malicious transactions and network attacks. 

"Prior to the MainNet upgrade, it is recommended that all exchanges upgrade their neo-cli to v2.10.2 in advance. NEO related tools or projects should also be upgraded according to the new Network Fee mechanism to avoid any loss due to failed transaction executions caused by insufficient Network Fees," they added.

Meanwhile, the news created a favorable environment for NEO price recovery. The coin has gained over 13% in recent 24 hours and moved to the 19th place in the global cryptocurrency rating to trade at $14.20 after a strong rally to $14.47 during late Wednesday hours. On the intraday level, the price is supported by $13.50 (the middle line of 1-hour Bollinger Band). Once it is cleared, the sell-off is likely to gain traction with the next focus on $13.00 and $12.80 (Simple Moving Average (SMA) 50 1-hour). On the upside, the first resistance comes on approach $14.50 strengthened by the recent high.

NEO/USD, 1-hour chart