Antshares, now rebranded as NEO looked to be one of the hottest new crypto currencies in early August. After being granted the nickname "Chinas Ether" NEO posted huge gains briefly becoming the 5th largest cryptocurrency by market cap. NOE uses a similar smart contract system at Ether but wasn't limited by coding languages the same way that Ether is. Unfortunately since these huge gains and reaching 55$, NE0 has slowly been bleeding value, today sitting at 21$.
The first question is what stopped NOE's growth? Neo was valued at 55$ due mostly to hope, everyone has been looking for the next "Ethereum" and when NEO was rebranded as Chinas Ethereum everyone hoped to get in on the ground level and ride the price wave (as many did). But what has caused the bleeding instead of continued growth? One of the main reasons is although the smart contact system is comparable to Ethereum, the amount of developers and large organizations utilizing it is still very slim.
So now what do we throw in the towel as NEO had another major drop this week or is it time to buy? First lets check the order book.
As is pictured above although NEO has been bleeding at its consolidated price after China banned ICO's neither buyers nor sellers have total control with buyers actually holding lightly better ground.
Next lets look at our support and resistance levels
As you can see here we have an ascending funnel indicating a potential future upswing.
Finally the Fibonacci
As shown here if we break the 38.2% retracement we can expect the price to settle around 30$ after the first large breakout. This will also be crucial in buyer confidence. NEO is a solid coin and has potential.
In my opinion NEO is undervalued right now, it has received an incredible amount of negativity due to its slowly bleeding value over the last month but I predict that we may have reached the bottom of our fall.
cryptocurrency