The NEO platform is a blockchain network that is decentralized and open-source. It enables the creation of various blockchain products and services with high transaction speeds. In terms of functionality, it is often compared to Ethereum since both platforms provide tools for building decentralized applications like decentralized exchanges and price markets.
NEO allows users and network participants to stake their balances and engage in network governance by voting on proposals and changes. On the other hand, GAS is used to pay for computational power on the network. The network operates on the Proof of Stake consensus mechanism and utilizes a unique protocol called delegated Byzantine Fault Tolerance.
This protocol allows approved nodes to process up to 10,000 transactions per second. By combining PoS and dBFT, Neo ensures smooth operations with smart contracts and Dapp creation, faster transactions, and scaling of the network. NEO generates GAS and serves as the primary cryptocurrency for payment settlement on the platform, while GAS is used to pay transaction fees.
NEO is also involved in network governance as holders can stake NEO to vote for consensus nodes. Consensus nodes generate new blocks and receive GAS fees as rewards in return.
With a new alliance with HashKey Cloud, NEO’s favorable trend could continue. Since the end of October, NEO has experienced rapid development.
Neo was able to profit from the current bull run because of increased trading volume. On October 31, NEO was trading at $9.45. On December 5, NEO surged to $12.19, a 28.9% increase. As a result of its growing momentum, NEO surged by 19.5% to $14.57 by December 25.
Experts predict Neo’s growth to continue following its recent collaboration with HashKey Cloud. As of December 19, HashKey Cloud is the newest member of the Neo Council. Because of HashKey’s membership and the token holders’ vote, the news excited the Neo community.
Technical Analysis & Prediction of the NEO Coin Price
NEO price is slowing down after the uptrend was broken. At the start of this month, the bears broke the uptrend, and later on, a lower high was made below the trendline which confirmed it.
The current support levels for the NEO coin are at $10.0 and $6.57 while the resistance levels are at $15.46 and $27.26. The 50-Day EMA and the 150-Day EMA are still in the bullish crossover. The bulls are likely to bounce off of the $10 support level.
Conclusion
Neo utilizes a proof-of-stake consensus mechanism for transactions. To prevent future exploits, it is developing a sidechain that is compatible with Ethereum Virtual Machine. NEO also allows its holders to stake NEO to vote for consensus nodes, making them involved in network governance. On December 19, the Neo Council welcomed HashKey Cloud as its newest member. However, the NEO price has recently broken a bullish trendline, and the predictions for its value are currently bearish.
Technical Levels
- Support Levels: $10.0 and $6.57
- Resistance Levels: $15.4 and $27.2
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2024/01/18/neo-network-downtrend-confirmed-here-what-to-do-with-neo/