NEO Price Nosedives as Bitcoin Price Shoots Up, NEO 3.0 Upgrade Proposal Hopefully Sparks Recovery – Technical Analysis
As Bitcoin price shoots up during the last week, NEO price nosedives hard and records huge losses. Trading over Bitcoin, NEO price is at 0.004107 level as of press time. The price action is not looking good for NEO, but release of the NEO 3.0 Upgrade proposal could hopefully spark a decent recovery to the upside.
Price is trading along a downtrend and broke below the strong support level around the 0.004629 BTC mark. The price action fell through the 0.236 Fibonacci support level and is currently trading along the bottom Bollinger Band. NEO managed to bounce from the 0.003921 BTC mark, which could mean that the level is already the bottom. The bottom formation will be confirmed if price manages to hold at current level and push upwards in the coming days.
MACD is currently far below the signal line, which indicates that momentum is in favor of the downward selling sentiment. The RSI is still sitting at the oversold region and is attempting to bounce in route for a recovery. An upward movement back to the 0.236 Fibonacci level is still far from sight, but if RSI continues upward move, momentum may shift back to upward buying sentiment.
In terms of price action, NEO is currently struggling, and a decent recovery is still tentative in the coming days.
NEO 3.0 Upgrade Proposal
On July 11, the NEO 3.0 Upgrade Proposal was released to the community, which targets to upgrade the NEO blockchain version with developments for use of large scale institutions. The NEO 3.0 is planned to have higher Transaction Per Second and better stability. Among the major improvements with NEO 3.0 are the following: protocol modification that adjusts the pricing and economic models, smart contract modification that addresses compatibility of smart contracts on other blockchain networks, NeoVM modification that easily compiles any high-language smart contract, and fixes for identified bugs in the network.
Hopefully, the NEO 3.0 development and rollout in the coming months could help NEO record decent recovery in terms of price action and propel the NEO blockchain network to mainstream adoption and practical application.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)