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It was somewhat to be expected the NEO price had seen massive growth based on half-truths and rumors. A lot of people are excited about future ICO projects being hosted on the network. However, it remains to be seen if this particular ecosystem is exempt from Chinese regulation in the future. Until we receive official confirmation on that front, the NEO price may continue to go down. Overnight, it dipped from $42 to $36, and the volatility is far from over.
NEO PRICE STARTS TUMBLING DOWN
No one should be surprised to hear the NEO price is coming down to normal levels once again. Although there was a nice pump yesterday, most of the “news” is still based on speculation and rumors, rather than facts. As of right now, there is no indication the Chinese government will not scrutinize NEO-based ICO projects. There is no indication they will do so either, but it is safe to assume there will be some form of repercussion sooner or later.
As a result of this uncertainty, the NEO price shot up like a rocket over the past 48 hours. Even last week, we saw the NEO price spike to over $45 out of the blue before eventually calming down again. The past two days saw some similar movements, although the price never surpassed $45 again. Right now, there are substantial losses in both USD and BTC value for NEO, which was only a matter of time. Without credible proof, there is no reason to push up this token’s price whatsoever.
These past 24 hours have resulted in the NEO price slowly slipping from $42 all the way down to $34. Ever since that time, there has been an attempt to regain control at the $36 level, but none of those efforts have been successful so far. Instead, the NEO price is struggling for control and may continue to dip below $35 for a few more hours. Some people may see this as a new buy opportunity, although it remains to be seen how high the price can climb again.
NEO still has a substantial amount of trading volume to help things move along. More specifically, over $237m worth of NEO has changed hands in the past 24 hours. That is a pretty large number, especially when considering most altcoins in the top 10 struggle to break $100m right now. Then again, more trading volume can also result in more price volatility. It seems this is mainly affecting the NEO price right now, although some other top cryptocurrencies have gone in the red as well.
As is pretty much always the case with NEO, the majority of trading volume originates from Bittrex. Their BTC and USDT markets are keeping the NEO price afloat right now, as they represent nearly 50% of all trades. Bitfinex and Binance complete the top three, but with far less volume than Bittrex. It is interesting to see the demand for this currency always originate from the same exchanges, despite having no less than 41 tracked trading markets on Coinmarketcap.
With the 12.8% loss in USD value and 14.2% decline against Bitcoin, things are not looking all that great for the NEO price. It is possible the value may drop as low as $30 overnight, but there may be a brief uptrend as well. Given the severe volatility of this particular market, no accurate predictions can be made at this point. It is a goldmine for daytraders, though, that much is certain.
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