Leading Chinese layer-1 solution Neo Network (NEO) is currently experiencing a surge, with price action battling upper trendline resistance and a +7% pump. This article will analyze the current state of NEO and determine whether it is too late to buy.
Neo Co-Founder Da Hongfei recently conducted an onboarding campaign at Token2049, highlighting the need for growth and offerings to attract new users to Web3. Additionally, Flamingo Finance restores cross-chain functionality on the growing DeFi protocol, further enhancing the ecosystem. These developments aim to stimulate growth and increase the adoption of NEO.
Following a sudden upside move, NEO is trading high in the channel with a market price of $7.49, representing a 24-hour change of -2.73%. The current price action is challenging major resistance from a descendant upper trendline. If NEO can break through this resistance, it could ignite a new rally.
Technical Structure and Targets
NEO has a strong technical structure after bouncing out of a double-bottomed formation. This bounce saw NEO reclaim its position atop the 20DMA at $7.27. With this upward momentum, NEO has a target of $9.54, which corresponds to the 200DMA. If a breakout occurs, NEO is likely to reach this target.
Despite the RSI signaling overbought conditions, the localized retracement following the recent pump has cooled down the indicator to a neutral 52. This indicates a period of consolidation, which could trigger a breakout. The MACD is also showing bullish divergence at 0.07, reflecting the underlying momentum behind the double-bottomed support bounce.
NEO currently has an upside target of $8.60, representing a potential gain of 14.97%. Breaking out of the descendant trading channel and reaching the 200DMA resistance would position NEO for further growth. The downside risk appears limited, with potential support at the 20DMA at $7.27. Overall, the risk-to-reward ratio for NEO is 5.33, making it an attractive entry with significant upside potential.
While NEO shows promise, top traders are already exploring opportunities in the market using Launchpad XYZ. Launchpad XYZ is an ecosystem designed to lower the entry barrier to Web 3.0 with user-friendly tools, insights, and analytics. It offers features such as NFT discovery, a decentralized exchange, a Web3 wallet, and utility token analysis.
LPX Token and Benefits
The heart of the Launchpad XYZ ecosystem is the $LPX token. Holders who stake a minimum of 10,000 tokens can enjoy various benefits, including fee discounts, early access to NFT mint whitelists and presales, play-to-earn game launches, and community prestige badges. The intention to list LPX on major cryptocurrency exchanges is expected to drive demand for the token.
Future Outlook and Potential Growth
Launchpad XYZ plans to introduce additional features in Q3 2023, anticipating substantial user adoption. With a maximum token supply of 1 billion, $LPX is set to launch on crypto exchanges later this year with a fully diluted market cap of $70 million. The comprehensive suite of features and ambitious vision make Launchpad XYZ an exciting project to watch in the evolving crypto industry.
NEO Network is currently poised for a breakout, with price action battling resistance and strong technical structure. Despite potential risks, the upside potential for NEO is significant. However, investors should also consider exploring opportunities in Launchpad XYZ, an innovative ecosystem offering numerous features and the promising $LPX token. As with any investment, it is essential to conduct thorough research and consider the risks associated with the volatile crypto market.