With all the positive Bitcoin price momentum taking place as we speak, the cryptocurrency community is in for a very wild ride. No one knows how things will evolve in the coming hours and days. One currency suffering from rather substantial losses right now is NEO. Given the recent NEO price trend, a correction was bound to happen sooner or later. Seeing the value drop below US$30 again is somewhat of a surprise, though.
NEO Price Struggles To Maintain $30
Everything that goes up in value must eventually come down before a new all-time high can even be considered. In the world of Bitcoin and cryptocurrency, that often means altcoins will undergo some very steep corrections sooner or later. Given the recent NEO price trend this past week, it is not entirely surprising to see this altcoin taking a beating right now. While it is not fun to look at by any means, the downward momentum is slowly pushing the NEO price below US$30.
Though the NEO price is already below US$30 right now, there is still the potential to move back toward that target again. It is evident a lot of people are liquidating their altcoin holdings in exchange for Bitcoin right now. While not all altcoins will lose USD value due to this trend, they will lose a lot of ground compared to Bitcoin. That is exactly what is happening to NEO right now, sadly.
With the NEO price having gone up to almost US$38 earlier this week, it is only expected we would see some form of a retracement. It is perhaps lucky that this retracement coincides with the current Bitcoin price movement. As a result, losses have been kept to a minimum for now. Although a setback of 3.56% since yesterday is not something to ignore, it is not exactly the end of the world either.
The trading volume for NEO is slowly drying up as we speak, though, which is not a good sign by any means. Just under US$40 million worth of NEO has been exchanged over the past 24 hours, which is almost negligible. If this trend keeps up, no one should expect any sort of NEO price recovery anytime soon. It is true NEO has always had far less trading volume compared to most other popular altcoins, but these numbers are looking pretty bleak, all things considered.
With Bittrex dominating the markets right now, it is not hard to see why there is so much negative pressure on the NEO price. More specifically, the top two exchange markets by trading volume are Bittrex’s and Binance’s NEO/BTC pair. This further confirms people are dumping everything in favor of Bitcoin right now, instead of the other way around. It also explains why NEO has lost 11.49% of its value relative to Bitcoin, although this number is likely to increase further in the coming hours.
Whether or not we will see the NEO price returning to US$30 or higher in the coming hours is difficult to predict. Right now, that seems incredibly unlikely, although stranger things have happened in the world of cryptocurrency. Altcoins will eventually recover and start noting gains again. For now, we have to take the bad with the good and wait for a positive change in momentum. That process could take anywhere from a few hours to several months, though.