• NEO mainnet update will be launched on block 6,200,000.
  • NEO/USD is trading within a short-term sliding channel.
  • A sustainable move above $25.50 will signal that the downside correction is over.

NEO is the 16th largest digital asset with the current market capitalization of $1.77 billion and an average daily trading volume of $1.2 billion, mostly in line with the current values. NEO/USD topped at $25.89 and retreated to the recent low of $22.76 on Sunday, September 20. At the time of writing, the coin is changing hands at $24.89. Despite the recovery, it is still down over 4% on a day-to-day basis. 

NEO gets ready for mainnet update

NEO developers announced a significant mainnet update that would drastically change the transaction prioritization mechanism and alter the free gas threshold. A bidding mode introduced in the new version will give the priority for processing transactions with higher GAS.

The new version was 2.12.0, will be activated on block 6,200,000. According to the press release published on the project's official blog, the developers expected to launch the update on September 20; however, we are still eight blocks away from the target value. 

NEO on-chain statistics

Source: neoscan.io

The MainNet might be temporarily unstable during the activation period, meaning that NEO may be in for short-term price turbulence.

The hard fork will occur at block height 620000; we urge all relevant parties to pay attention and perform the upgrade in advance in order to avoid data conflicts.

NEO/USD: The technical picture

On the 4-hour chart, NEO/USD is moving within a downside-looking channel with the support currently at $23.00. As we have reported earlier, this area served as a local resistance for the coin before it was turned into support during the previous week. 

If the upside momentum is sustained, the price may recovery to the channel resistance at $25.50, closely followed by the recent recovery high of $25.89. Once this area is cleared, the bullish momentum may start gaining traction with the next focus on $27.00, signaling that the downside correction is over. 

Meanwhile, the support of $23.00 is reinforced by the 4-hour SMA50 at $22.50. A sustainable move below this area will invalidate the short-term bullish scenario and bring $20.00 into view. 

NEO/USD 4-hour chart

If we zoom out a 12-hour chart, the support of $20.00 is reinforced by SMA50, meaning that the bears will have a hard time pushing the price below this area. This psychological line has been limiting the downside correction since September 13, while all sell-off attempts were heavily bought. A daily close below this area will attract new bears to the market and increase the selling pressure with the next target of $19.00 (the lower line of the 12-hour Bollinger Band) and $17.60 (12-hour SMA100). 

NEO/USD 12-hour hour

To conclude: NEO/USD has recovered from the short-term channel support is moving within the short-term sliding channel. A sustainable move above $25.50 will signal that the correction is over and bring the upside trend back on track. On the other hand, the critical support is created by $20.00, a sustainable move lower will negate the favorable scenario at this stage.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Decentraland price under pressure by market turmoil, MANA points to steep correction

Decentraland (MANA) has not been able to sit back and enjoy its all-time highs printed on Thursday, above $6.0. MANA price reversed to the downside as a wave of negative news surrounding a new Covid variant hit news wires during the Asian session.

More Cryptocurrencies News

Bitcoin, Ethereum, XRP at discount ahead of Black Friday while investors fear new COVID strain

Over $265 billion wiped off the overall crypto market capitalization in a bloodbath as news of the new Covid strain breaks out. Bitcoin, Ethereum and Ripple prices have tumbled over 6%, and the top 10 cryptocurrencies are trading at a steep discount.

More Bitcoin News

XRP holds key support while indicators point to short-term recovery

Ripple started a recovery wave above a key support level of $1.024. XRP price started an upside correction as indicators suggest a short-term recovery. The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.

More Ripple News

Dogecoin-killer Shiba Inu hits 1 million holders, gets listed on South Korean exchange

Shiba Inu hit an important milestone of 1 million holders with a rise in the number of investors. The memecoin listed on a South Korean crypto exchange successfully despite strict regulatory requirements. 

More Shiba Inu News

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

BTC

ETH

XRP