In case anyone doesn’t know, the NEO project is an analogue of Ethereum only with Chinese roots. In fact, during their 9 years of existence, they did nothing significant.
But the project needs to exist somehow and make money in the market. Therefore, the guys almost every year announce and make some new useless network updates.
In general, we think this serves as triggers for an endless fall in price and even the coin periodically begins to grow well.
And by the end of this year, a new update will be released on the NEO network, which will create a side chain of blocks, which is supposedly needed to increase security, privacy and other crap necessary to create more efficient Defi inside NEO.
⛽️ GAS inside NEO
The internal coin of the NEO blockchain is the GAS cryptocurrency, which does not require special equipment to mine; it is enough to have NEO coins.
GAS is used as the transaction fee for NEO coins.
This is a GAS coin, closely related to NEO, following the path of NEO growth, and this forms the necessary relationship, the movement of which should be smooth.
So, we’ve sorted out the fundamental component. Now let's get down to business.
⚖️ Correlation of NEO and GAS
On the chart you can see how these two coins always move in pairs after each other (orange line GAS price chart). Their correlation is 100%!
Well, this week the NEO coin is very far behind GAS.
Did you get the point?)
📊 Technical analysis of NEO
The support level of $6.88 is key and it has been the strongest support for the price for more than 6 years.
A bullish Wedge pattern was formed on the chart, which is already working out.
Also, the trading volume is growing strongly and long-term moving averages have been broken.
In general, all of the above is not particularly important, the most important thing you need to know is that GAS has greatly outperformed NEO, which means the margin for continued growth in NEO remains high.
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