The Neo price is doing excellently today. It has jumped by more than 42% in the past 24 hours, bringing its past seven-day gains to almost 100%. This performance has brought its total market cap to more than $8.79 billion, making it the 19th-biggest digital asset in the world.
What happened: Neo is a blockchain project that was launched in 2014 to offer an open-source and decentralized ecosystem for developers to build apps. Over the years, the Neo Token has been in a strong upward trend.
This year alone, it has risen by more than 520% as demand for altcoins soar. This growth is mostly because of the low-interest-rate environment and the overall demand for digital currencies like Bitcoin and Ethereum.
Another important reason why the Neo price has jumped is the ongoing upgrade to version 3. This is a new protocol in its path to full decentralization.
Some of the features of the N3 upgrade are its multi-language support, decentralizd storage, native oracles, self-sovereign identity, and advanced interoperability. It will also offer a dual-token model, and best-in-class tooling. These features will help bring more developers into its ecosystem. In most periods, digital coins tend to rally ahead of a major upgrade.
The daily chart shows that the Neo price has rallied in the past 10 consecutive days. This has seen it rally above its 25-day and 50-day exponential moving averages. It has also risen by more than 125% from the important resistance at $55. The price broke out after it formed a cup and handle pattern.
Therefore, in my view, the Neo price will keep rising as bulls target the next key resistance at $150, which is about 25% above the current price. However, like we have seen with some parabolic movers before, there is a possibility that it will retreat as bulls start to take profit. If this happens, the currency could drop by 55% to the support at $55.
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