In a dramatic twist that’s stirring interest among South African crypto traders, NEO, the native cryptocurrency of the Chinese blockchain platform Neo, has reached a notable milestone, hitting a 36-week high with a peak price of R 281.52 (approximately $15.3) on November 5. This surge represents a significant comeback for NEO, which has seen its value ascend from a period of sustained decline since mid-February, when it last hit R 285.20 (around $15.5).
The resurgence of NEO, which has historically positioned itself as a rival to Ethereum, comes after an eight-month bearish trend that saw its value diminish against the backdrop of a fluctuating crypto market. Yet, recent weeks have seen a remarkable turnaround, with data from market intelligence firm Santiment indicating an explosion in NEO’s social volume, noting an exceptional 800% increase in discussion and interest around the token over the past week.
Adding to the fervor around NEO, statistics from Santiment have also brought to light that Binance futures funding rates for NEO have edged up to 0.05%. For the South African investor pondering the implications, this metric suggests a leaning towards short-sellers who bet against the token’s price – a position they may hold until a significant market shift occurs.
This viewpoint is further cemented by NEO’s total open interest (OI)—a term which refers to the total number of outstanding derivative contracts, such as futures and options, that have not been settled—surging by a stunning 68% in the preceding 24 hours. According to the analytics source, this puts NEO’s OI in the derivatives space at a value of R 814.34 million (around $44.3 million).
While the uptick in Binance funding rates typically signals short-seller dominance, the precise balance between bearish short positions and bullish longs remains uncertain, painting a complex picture of market sentiment.
At the time of writing, NEO has shown considerable strength, posting a 17.6% gain in the last 24 hours with a trading price of R 251.36 (approximately $13.66). Over the past month, NEO’s ascent has been even more pronounced, recording an impressive 91% climb.
South Africa’s crypto enthusiasts are taking note as NEO’s total market capitalization solidifies its standing, currently holding at R 17.73 billion (about $963 million), positioning it as the 50th largest cryptocurrency by market cap. The trading volume for NEO has also witnessed a surge, with a 316% increase bringing its daily trade volume to R 11.28 billion (approximately $613 million).
The bullish trend for NEO comes at an exciting time for the South African crypto market, as the country grapples with the fast-evolving landscape of digital currencies and blockchain technology. With NEO’s substantial 30-day gain and its soaring trading volume, the digital asset is drawing considerable attention from both retail and institutional investors within the region.
With the cryptocurrency’s performance breaking new ground, market watchers and investors in South Africa are closely monitoring NEO for its potential to redefine market trends and offer fresh opportunities in the burgeoning field of digital finance.