The NEO price is under pressure as the rest of the cryptocurrency industry struggles. Neo is trading at $33.63, which is more than 76% below its year-to-date high. It is still about 33% above the lowest level in May. It has a market cap of more than $2.3 billion and is the 40th biggest cryptocurrency in the world.
What is Neo? Neo is one of the oldest blockchain projects in the world. It was established in 2014 and has been on a strong growth. It was established by Da Hongfei and was the first project to return all funds it raised from investors when it became self-sustaining. It also made history as the first major smart contract platform from China.
Recently, Neo made headlines when it migrated to the N3 mainnet, which was an upgraded version of the original code. N3 has several features like a built-in-oracle, NeoID decentralized identity protocol, Neo Name Service, an on-chain governance protocol, and a simplified architecture.
While Neo has made some progress, the Neo price has faced the same challenge that most blockchain projects have faced. For one, its price has declined as investors react to weak demand from investors. It has also reacted to the ongoing crackdown in China and the relatively hawkish FOMC.
The weekly chart shows that the NEO price has struggled lately since it reached its year-to-date high in May. The recent N3 upgrade did not provide a catalyst for the coin. Still, a closer look at the chart shows that Neo is forming what looks like a cup and handle pattern.
Indeed, the current decline is part of the handle part of this pattern. While it has already dropped below the 50-period moving average, there is a possibility that it will bounce back as bulls attempt to move to the all-time high of $165.32. However, a drop below the support at $25 will signify that there are still more bears in the market.
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