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A general rule of thumb is how a rising bitcoin price will have an effect on alternative cryptocurrencies. In most cases, altcoins will effectively lose value due to the increased Bitcoin value.Right now, that is exactly what is happening to most currencies, even though the losses are kept to a bare minimum. The NEO price is slowly trying to reach $30 again, although there is still plenty of work to be done in this regard.
NEO Price Shows Signs of Upward Momentum
After a pretty volatile week, the NEO price is finally starting to form a stable floor. That is a positive sign, even though the NEO price had successfully hit $32.52 not too long ago. After that point was hit, it didn’t take long until the price started to retrace. Given the Bitcoin price momentum at that time, it isn’t entirely surprising to see an altcoin such as NEO lose a bit of steam as well.
Although things have not evolved in a negative manner per se, the NEO price has struggled to find a stable floor. With the value going from $32.5 to $28.35 in quick succession, it is evident something had to change sooner or later. Thankfully, it seems the floor has effectively been found for the time being, and the upward trend may very well be resumed in the days to come. At the time of writing, one NEO is worth $28.5, which isn’t too shabby for the time being.
Moreover, it seems the NEO market cap has set a new all-time high as well. Over $400m has been added to its market cap all of a sudden, although this is not due to the price per NEO rising significantly. Instead, the circulating supply has increased by 15 million coins, which would explain this change in market cap quite easily. It is unclear why these coins are brought in circulation right now, though.
The NEO trading volume isn’t changing all that much by any means. Then again, we have seen this volume dip to the low $30m mark on more than one occasion. These past 24 hours haven’t been much different in this regard, as the trading volume sits at just $33.5m. Not exactly spectacular, but  NEO has proven time and time again a higher trading volume isn’t required whatsoever. It will be interesting to see how this situation evolves, though.
The leading markets for NEO are Binance, Bittrex, and Bitfinex in that order. It is pretty significant to see Binance and Bittrex being the only two platforms to generate over $10m in volume. The gap with Bitfinex is almost $8m, which is pretty steep. Â Considering how the NEO/BTC trading markets are suddenly the rage, it is evident there may be some more NEO price volatility moving forward.
All things considered, the NEO price appears to be in a good place right now. However, the introduction of 15 million additional tokens will raise a lot of questions and increase volatility as well. It will be an interesting market to keep an eye on, as speculators may make a good amount of money by flipping coins back and forth. The future still looks pretty interesting for NEO as a whole, though.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.