- $NEO price jumped after it unveiled winners of its AI contest.
- Neo has formed a triple-top pattern on the daily chart, pointing to a potential dip.
Neo price drifted upwards on Monday as cryptocurrencies recoiled. The coin rose to a high of $9.72, which was a few points above the weekend low of $8.67. Despite the jump, Neo remains substantially lower than the year-to-date high of $15.68.
Why is NEO jumping?
It is unclear why Neo price rose in a low-volume environment. A likely reason is that Neo has embraced artificial intelligence, one of the fastest-growing industries in the world. In a note on Monday, the developers announced the winners of its NeoChat ChatGPT launch competition. The winners are included in this Google sheet document.
Therefore, there is a likelihood that NEO price rose because of its investments in AI. Other AI assets like stocks like C3.ai and Guardforce AI tends to jump when there is a major announcement. The same is true when other companies make announcements about the industry.
Meanwhile, the total value locked (TVL) of Neo has jumped in the past few months. The TVL has jumped to 6.04 million NEOs, which is few points below all-time high of 7.5 million NEO. In dollar terms, however, Neo has a TVL of over $60 million, which is lower than the all-time high of over $350 million.
Read more: How to buy Neo.
The biggest dApps in the ecosystem are Flamingo Finance, NeoBurger, and Forthewin Network, which have a TVL of over $40.69 million, $19.59 million, and $673k, respectively.
Therefore, there is a likelihood that this Neo price jump will be short-lived because it is not supported by volume. Data published by CoinMarketCap shows that the volume of NEO traded in the past 24 hours stood at over $87 million, which is a few points above the 7-day moving average.
Neo price prediction
Turning to the daily chart, we see that the NEO price has formed a triple-top pattern at around $13.95. The neckline of this pattern stands at $9.23. In price action analysis, this pattern is usually a bearish sign. It has moved below the 50-day moving average and is now a few points above the neckline of this pattern.
Volume has also started retreating. Therefore, because of the triple-top pattern, there is a likelihood that the coin will have a bearish breakout as sellers target the next key support at $7.50. This price is about 20% below the current level and is the highest point on December 13.
