Shortly after Xi’s speech, the platform’s NEO cryptocurrency pumped 40% against the US dollar to a high of $13.75.
China’s president made the remarks during a meeting with the political bureau of the Chinese Communist Party (CCP).
AntShares, founded by Da Hongfei and Erik Zhang back in 2014, was rebranded to NEO in 2017, and it is often regarded as China’s first blockchain platform.
During his meeting, President Xi stressed that it is necessary to “enhance basic research, enhance innovation, and strive to let China take the leading position in the emerging field of blockchain, occupy the commanding heights of innovation, and gain new industrial advantages.”
The comments sparked a bullish upturn in the price of multiple Chinese-led cryptocurrencies, including NEO and Tron.
NEO experienced its highest daily trade volume since January 2018, with more than $1.3 billion being traded in a 24-hour period.
From a technical perspective, NEO obliterated the $8.50 and $10.20 levels of resistance, surging all the way to $13.75 before achieving consistency at around $11.65.
NEO is now trading above the 200 EMA on the daily chart for the first time since July 13, and this should provide a level of support over the coming weeks.
A retest of the broken level of resistance at $10.20 could occur later this week as the hype surrounding China’s announcement subsides, but it’s unlikely that the coin will break to the downside following a rally of this magnitude.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.