NEO price analysis: NEO/USD stalls ahead of Ontology airdrop; will the recovery hold?
- NEO project is making progress, criticism over hidden centralization is increasing.
- The Ontology airdrop is gaining traction of major cryptocurrency exchanges.
- The resistance level at $119 is a significant hurdle in NEO price recovery.
NEO price is trading upwards during the afternoon session Monday. NEO/USD is trading at $118 and is forming a support level at $116. NEO price has been on a downward roll from the weekend’s trading. The currency is stalling; the NEO project is making progress while there is increasing criticism over hidden centralization.
The NEO project has been experiencing conflicting news. For instance, the Ontology airdrop is gaining traction on various cryptocurrency exchanges including Binance and Huobi Pro. Consequently, the fresh scrutiny of the network due to its prominence has resulted in widespread criticism. This is happening after the weakness of NEO consensus nodes was brought to light and explained citing hidden layers of centralization. It means that NEO has a close relation to Ripple (XRP) as well as IOTA. Both of which depend on centralized services to achieve consensus.
The problem became apparent when one of the NEO consensus nodes suffered a glitch. Besides, the fact that there are only seven nodes in the world, it means that it is not possible for the willing participants in the network to operate. This situation is a negative effect on the network. Similarly, the other nodes were causing a delay in the consensus at the time one of the nodes was crashing. The NEO team of developers operates all the nodes. The network, however, is aiming at disabling the system to permit voluntary operation of the nodes in 2018.
Technical analysis
NEO price is forming support at $116 support level. The currency is trading below the 100-simple moving average trend indicator. NEO/USD price broke past the 23.6% Fib retracement level of the previous high of $124 and a low of $115. On the downside, NEO price short-term support level has been tested severally during trading on Monday. The currency needs to maintain this level to avoid declines. On the upside, the resistance level at $119 is an important hurdle in the price recovery. A break above this level could the price trade closer to the major resistance level at $124.
NEO/USD price chart
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
