NEO hit a 3-month high on Friday, rallying to highs of $9.23 with an impressive 16% spike.
As the altcoin trends among the top performing coins among the top 100 by market cap, a surge in buyside pressure has pushed intraday trading volume up by 270% to over $153 million. The price is up 35% this past week and 24% since September 27, with a breakout on cards as price pierces a key resistance line shown in the chart below.
NEO price- what’s driving the bullish sentiment?
The crypto market may have lost about 1.5% of its total value in the past day as market cap drops to $1.3 trillion. However, the buoyancy that engulfed the space early this week to push Bitcoin to above $35k remains very much intact.
NEO appears to have benefited from this outlook, with its price seeing a sharp ascend starting October 20. Amid this outlook has been another factor that could be helping NEO bulls – new network developments. Here’s one:
#Neo Founder @dahongfei, announcing #Neo’s New Chapter: an #MEVFree, #EVM compatible sidechain, to ensure security, privacy, and a smooth experience in the increasingly complex #DeFi landscape.
The sidechain is under development. The testnet is planned to be launched at the end… pic.twitter.com/EO9Ck52qGt
— Neo Smart Economy (@Neo_Blockchain) October 27, 2023
This recent news around taking NEO into a new era powered by decentralised finance (DeFi) looks to be part of the positive sentiment surrounding the project. In particular, the proposal to have an EVM-compatible sidechain go live in coming months has investor interest up.
“The Neo Sidechain will use Enveloped Transactions to eliminate toxic MEV and censorship, creating the fairest playing field for both seasoned DeFi traders and the average users” NEO founder Da Hongfei said.
The sidechain is under development. The testnet is planned to be launched at the end of 2023.
According to details posted by the Neo Smart Economy, the official X account of the NEO ecosystem, the proposed sidechain is currently under development. However, a testnet is scheduled for the end of this year.
NEO price- what’s next?
The development could be a breakthrough move for NEO in coming months, with increased DeFi presence likely to positively impact the token’s price.
If the upward trend holds and markets fashion another uptick, NEO price could eye $10 and potentially the robust challenge around $13. The extended daily RSI however suggests a potential for a retest of support.
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