Neo (NEO) price is up 13% this week, here’s why

Neo (NEO) price is trading more than 13% higher this week as crypto investors anticipate the launching of the new DeFi project called “Flamingo Finance (FLM)”. 

Fundamental analysis: Launching soon

Neo, an open-source blockchain platform, plans to launch Flamingo Finance by September 23. This new project is a part of the NGD’s (Neo Global Development) incubator initiative that seeks to utilize the full potential of decentralized finance by providing interoperability between blockchain networks and their related assets. 

Flamingo Finance consists of 5 components, per the project’s whitepaper. 

“Flamingo is an interoperable, full-stack decentralized finance protocol built on the Neo blockchain,” the whitepaper states.

“Flamingo is comprised of five main components, including Wrapper – a cross-chain asset gateway, Swap – an on-chain liquidity provider, Vault – a one-stop asset manager, Perp – an AMM-based perpetual contract trading platform, and also DAO – a decentralized governance mechanism. FLM is the governance token of Flamingo and will be 100% distributed to the community based on participation.”

As for the Wrapper component, it serves as a cross chain portal for Bitcoin (BTC), Ethereum (ETH), Ontology (ONT) and Cosmos-SDK based blockchains. In other words, users will be able to wrap different cryptos like BTC, ETH, NEO, USDT and ONT on the NEO blockchain as NEP-5 tokens. 

Furthermore, Flamingo Finance plans to start supporting BTC itself later in future.  In order to do that, Flamingo will use the Poly Network, which is an interoperability protocol developed by NEO, Ontology and Switcheo. This network will provide Flamingo with the ability to connect the blockchains and offer its users access to a high number of assets. 

Flamingo’s smart contracts are being audited by PeckShield Inc. at the moment, a company that also conducted audits for several DeFi projects including Harvest Finance, OneSwap, StarkExV2, SushiSwap, and more.

Technical analysis: Approaching short-term resistance

NEO price hit 2-year highs on the last of August, before correcting sharply lower together with the rest of the crypto market. The positive development for the bulls is that a correction stopped around $16, where the horizontal support is located. 

NEO stock daily chart (Trading View)

This base was then used by the bulls to push higher again and gain nearly 15% this week. The price action ascended to the area around $20, where the intraday resistance is located. A break of this resistance line opens the door for a push towards $23, where the last month’s highs are located. For long-term investors, the target is a zone above $24.50.

Summary

Neo blockchain is working on a new decentralized finance project Flamingo Finance, which is scheduled for launch by September 23. In the meantime, NEO price is heading higher as it recovers from last week’s sharp correction. 

The post Neo (NEO) price is up 13% this week, here’s why appeared first on Invezz.