All Cryptocurrencies have been subject to the crypto cycles known as Bearish and bullish crypto markets. The Neo coin has been historically subject to these cycles and affected by Bitcoin dominance during the cycles. This work has therefore provided useful insights on why the Neo coin has remained subject to the crypto bearish market to guide investors who wish to know how to Buy Neo.
Understanding the Neo coin
The Neo coin is a native token used in affirming ownership of digital assets on a Blockchain. This coin was created in 2014 by Da Hongfei and Erik Zhang. Its original name was Antshares but was rebranded Neo in 2018.
Structure of the Neo Blockchain
Neo Blockchain is an open-source digital technology designed to digitize identities and assets; enabling owners to claim full ownership of their assets and redeem their identities on a Blockchain. Neo Blockchain hopes to evolve a smart economy where users get due rewards for their smart contracts. The Neo Blockchain has two native tokens known as Neo and Neo Gas. The first native token Neo is used for asserting ownership of a given digital asset on a Blockchain while the Neo gas is used to pay for smart contracts.
Meaning of a bearish market?
Bearish Market is a season in the crypto market when the prices of all digital assets fall drastically due to massive selloffs by investors. During the Bearish market, investors tend to withdraw their investments from crypto, causing a devaluation of various Cryptocurrencies. This Bearish Market often lasts for one to two years depending on the cause of the bear season.
Is the crypto market in a bearish market in 2022?
The year 2022 has been described as a full Bearish Market for Cryptocurrencies by experts. Virtually all digital assets have witnessed a massive reduction in their price value since the beginning of the year till the present moment. Bitcoin and altcoins have lost more than 60% of their previous price value in 2022 which is the major factor that defines a bearish market.
Can the Neo coin resist the Bearish Market?
The crypto market moves in two cycles known as Bearish and Bullish markets. All Cryptocurrencies are subject to this movement without exception. Each crypto cycle is heralded by Bitcoin movement and every other cryptocurrency is made subject to it due to the principle known as Bitcoin dominance. The Neo coin historically has been subject to this crypto cycle and always influenced by Bitcoin dominance during each cycle, hence can hardly resist the Bearish Market.
How does Bitcoin dominance affect the Neo Coin?
The fact that Bitcoin has been the first created cryptocurrency with the largest investment put into it, makes it the most important cryptocurrency influencing other coins. All large capital investments first move into Bitcoin and from it circulates to altcoins. Almost all pairs traded today in the market have been pegged Bitcoin and its price movement affects all coins including the Neo coin.
Use case of the Neo coin
- Used for claiming ownership of digital assets.
- Offers a multi-language feature for running smart contracts.
- Offers a decentralized platform for storing digital assets.
Price history of the Neo coin
The Neo coin has witnessed a rapid price increase from its creation. Moving from it’s all-time-low at $0.078349 in October 2016 to reach a new all-time-high at $196.85 in January 2018 marking a 11852.50% increase in ROI from offering price. The price has been resilient since then creating strong support and resistance at various levels and currently below $10 in 2022.