NEO ranks 65th amongst the other cryptocurrencies, with a market capitalization of less than $600 million. It is often dubbed the Chinese version of Ethereum. After originating in 2014, the blockchain was recently renamed Neo Three from Antshares to create a new identity in the blockchain market. Fears of Chinese control and dominance of the governance of this open-sourced blockchain could be one of the reasons behind its declining price movement.
Compared to its peak validation in the month of May 2021, the value of the NEO token has tanked by more than 95%, raising a huge question about its revival. Being an open-source platform, the chances of improvement are slim.
NEO token has been under heavy scrutiny by sellers who believe the token is dead since the stricter rules against cryptocurrencies were enacted in China. The movement of the NEO token since the decline of May 2022 has been consolidated with huge volatility. The resistance of $13.38 is quite heavy and active against the support of $7.63, which has been tested continuously since June 2022.
NEO price action signified the lack of buying sentiment to ignite the token movements in the upward direction. The last retracement back to the support level happened in August 2022, when the token neared 100 EMA. Profiteering price action indicates a severe lack of confidence among the buyers, who are taking advantage of any upside movement to book profits.
Looking at the transaction volumes, they have remained mostly out of sync with the technical indicators. RSI recently touched the oversold zones with a value of 30 on curves, creating a minor buying spree.
A significant movement is required to reach the 100 EMA curve, while a tremendous upside rally is needed to reach the upper limit rejection level of $13.38. The outlook for the NEO token remains in the dark since supply and demand factors do not align with the price action. Despite a 71% liquidation ratio of its total supply of 100 million tokens, the NEO price outlook hasn’t been positive in recent weeks.
