NEO price analysis: NEO/USD down 2.51% on the day; NEO releases a statement on the status storage injection vulnerability

 NEO price briefly spiked during the afternoon (GMT) session on Friday breaching the key resistance at area $60.00. However, the crypto lacked the momentum to stay above the resistance and shortly slipped back below $60.00. Further attempts to break above the resistance on Saturday have been met with rising selling pressure. NEO/USD is currently testing the key support area, besides a bear trend is forming on charts and the digital asset is trading at $57.93.

The statement was released on Friday 18 and contained details of the vulnerability that was found in the smart contract code of a number of NEP-smart contracts. The statement says that the storage injection vulnerability only exists in the smart contracts of a few dApps and stressed that NEO blockchain has not been affected. NEO Global Development (NGD) in collaboration with Red4Sec Audit Company said:

“There are several NEP-5 tokens affected by this issue. By exploiting this vulnerability, an attacker could make changes to the contract storage. An attacker can burn a certain amount of tokens and change the status of totalSupply within the contract. However, such an attack can only change the show value of totalSupply. It will not change the actual supply volume. In addition, the cost of this attack would be very high. Therefore, we consider the risk of damage from this attack very limited.” The statement continued “NGD has already reached out to all concerned projects and informed them of the issue, along with releasing development guidance on how to address this vulnerability.”

NEO price, on the other hand, rejected the short-term support at $59.00, moreover, the 100 SMA also failed to hold the price is the current downside correction. The bear momentum is canceling the gains accrued yesterday, and NEO/USD could test the major support level at $56.00. Before that, $57.00 will try to hold the price in the event of continued declines. On the upside, the 38.2% Fib retracement level with the last swing high of $63.1 and a $56.5 low will offer resistance above $59.00 as the price corrects towards $60.00.

NEO/USD 15’chart