When asked about cryptocurrencies, the first thing that comes to a trader's mind is volatility, the term that describes the extent of price change in either direction over a certain period of time. Increased volatility means that the price of NEO is expected to change rapidly in the near future, whereas low volatility implies stable market conditions and moderate price fluctuations.
Although a skilled trader is capable of profiting in any market, it is the period of high volatility that promises larger yields, but also carries significant risks that must be managed properly in order to avoid losses.
Our accurate NEO price prediction is based on the thorough analysis of price action of NEO on the daily, monthly, and weekly time frames, the interpretation of candlestick patterns, as well as the readings of all major oscillators and indicators, specifically the Crypto Volatility Index, which offer crucial information regarding the probable change of NEO value in a span of a day and up to 5 years.
Crypto Volatility Index (CVIX) is a key real-time market indicator upon which we rely when making the NEO price forecasts. It measures the historical and implied volatility, as well as the associated market expectations, for the period of the next 30 days. Also known as Fear Gauge, the Crypto Volatility Index was developed and implemented by the Chicago Board Options Exchange (CBOE) to help traders assess market sentiments, the fear in particular, hence the alternative name. We apply CVIX to the NEO and other cryptocurrency markets, but it is a versatile index that can be used in other markets, such as stocks, indices, and Forex. In fact, the original CVIX was used for assessing the implied volatility of the S&P 500, an index that determines the performance of the top 500 companies in the United States. Later on, we have successfully adapted CVIX to the cryptocurrency market, famous for its volatility.
In traditional markets, the Crypto Volatility Index is calculated on the basis of the amount of call (buy) and put (sell) options associated with a given index, currency, or stock. An option is a financial instrument, a derivative security, to be precise, which allows traders to hedge themselves against directional risks in unstable markets.
In simpler terms, options present the way to protect the assets and also earn money during periods of sharp price fluctuations. Logically, the more people are buying put or call options, the more fearful or greedy the market participants are with regard to the approaching price change. That sentiment is then translated to a numerical value of the Crypto Volatility Index that goes from 0 to 100, with showings from 50 to 100 signifying the underlying agitation in the market and the approaching excessively high volatility.
For the purposes of better comprehension by the readers of our NEO price predictions, the high CVIX values are colored red. By the way, our proprietary algorithm takes into account the proven correlation between the S&P 500 and the Bitcoin market, and the rest of cryptocurrency market pairs that have a high correlation with the price behavior of BTC, thus giving the price forecast more depth and precision.
The Crypto Volatility Index of NEO is currently flashing 65, which means that traders must brace themselves for significant price fluctuation that needs to be dealt with accordingly. The most basic approach to use when trading with CVIX in any market, whether it is cryptocurrency or stocks, is to set the buy triggers when the volatility goes overboard. There is even a saying in the trading community, "When the CVIX is high, get ready to buy." What it means is that the fear is prevailing in the NEO market that will subsequently lead to a substantial price drop, which presents an opportunity for those outside the market to stock up on NEO at much lower prices. For those traders who already acquired a position, the high (red) Crypto Volatility Index implies that the time has come to elaborate on an exit strategy since high volatility combined with fearful sentiment generally results in a sizable price drop.
However, our price prediction model takes into account not only the rule of thumb described above but also the convergence-divergence relationships between the Crypto Volatility Index and the actual price action. Our proprietary algorithm identifies and analyzes the following market signals that offer means for calculating a precise NEO price prediction:
This is not the entire list of features and applications that make the Crypto Volatility Index ever so useful, but it comes to show how versatile and useful the measurement of crowd sentiments could be in trading. Moreover, it is a universal indicator that works not only in the cryptocurrency market but in the traditional ones as well, so you can use the strategies described above for trading across numerous markets.
Here are some further tips on how to act when the Crypto Volatility Index estimated by our algorithm shows red.
But most importantly, you should always bear in mind that NEO trading is associated with a substantial risk of losing money even if all signals align in a seemingly obvious fashion. Cryptocurrency markets could behave in an erratic and irrational way that could entail significant losses, especially for fledgling traders who don't possess enough competence and experience.
The NEO price prediction offered by Crypto Rating does not constitute financial advice but rather an informed suggestion regarding the expected price action. Therefore, keep in mind that you are always trading at your own risk, and our CVIX-based price forecasts must be used only as a valuable part of your personal trading strategy.
When it comes to NEO, its present price stands at $13.96 which makes up for the -4.31% change in the past 24 hours; the 30.59% increase over a month, and 41.32% increase on the yearly scale.
The average trading volume of NEO is estimated at $984 983 882, which should increase further to the bullish/bearish side in the near future, given that the Crypto Volatility Index is quite high right now. The circulating supply of NEO is 70 538 831 coins. The analysis of the recent and historical price action of NEO, together with the CVIX readings and other related factors, suggests that the price will encounter a sharp 7.45% rise over the coming day, with the ultimate price target for tomorrow being set at $15.00.
The breakdown of historical data, which is also carried out by our algorithm, reveals that the periods of high volatility in the NEO market usually lasts for 3-5 days, which leads us to the conclusion that by the end of next week, the price of NEO will land at $17.23, thus marking the 23.42% change from the present day.
The incorporation of deep machine learning into the algorithm allows it to generate long-term NEO price prediction, taking into account the current and the past Crypto Volatility Index showings, for instance, the average period of time during which NEO stayed in the red, the frequency of instances of high volatility in this market, etc., which affords the means for the algorithm to forecast the price for months and years to come, even in the extremely volatile market.
Having taken the volatility, and other vital factors, into account, we expect the volatility to die down in 1-2 days, at which point you can start looking for an appropriate entry/exit point since the price is likely to go into a range.
What do you think about our NEO price predictions? Share with us now in the comments section.