Late last week the Chinese President offered widely publicized comments regarding his intentions to make China a global leader in blockchain technology, which was met with mixed reactions from investors, with some analysts noting that it was the catalyst behind the recent rallys incurred by Bitcoin and altcoins alike.
These comments were particularly impactful to a handful of prominent Chinese blockchain projects, with the tokens related to these projects clocking meteoric gains yesterday.
Chinese Altcoins Sprint Upwards, But Retrace From 24-Hour Highs
Yesterday, multiple major altcoins posted gains disproportionate to the rest of the crypto markets, which can be linked directly to the Chinese President’s bullish comments on blockchain that were offered last Friday.
NEO, a popular blockchain project in China was one such altcoin that incurred massive upwards momentum, as it surged nearly 50% to highs of $13.00 before it lost its momentum and retraced to its current price of $10.70.
NEO is still trading up significantly from its weekly lows of $6.80, but it remains unclear as to whether or not this rally will continue to falter as the hype surrounding President Xi’s comments fades.
Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about NEO’s rally in a recent tweet, explaining that its massive influx of trading volume stems directly from the narrative surrounding China’s attitude shift towards blockchain technology.
“$NEO volume up over 1 Billion in the past 24 hours. The Chinese altcoin fomo is real. (Personally I’m focused on stacking Bitcoin & will only use these pumps to add to Bitcoin, not looking to hold majority of alts long term – hopefully you learned this lesson),” he noted.
$NEO volume up over 1 Billion in the past 24 hours
The Chinese altcoin fomo is real
(Personally I’m focused on stacking Bitcoin & will only use these pumps to add to Bitcoin, not looking to hold majority of alts long term – hopefully you learned this lesson)
— Josh Rager 📈 (@Josh_Rager) October 27, 2019
China Hype May Continue Faltering in Near-Term
It is important to note that NEO was not the only major Chinese altcoin that had rallied yesterday, as Tron and Ontology both incurred decent upwards momentum which has faltered over the past several hours.
Ontology is currently up 12% at its current price of $0.878, but it is down significantly from its daily highs of $1.15. Tron is also trading up 15% at its current price of $0.02, but it has similarly dropped from its daily highs of nearly $0.022.
It remains unclear as to what the long-term significance of the Chinese President’s comments is, although it is highly probable that it will not directly benefit any of the aforementioned altcoins in the near-term, which may mean that they will cut even further into their recent gains as the hype fades away.
Featured image from Shutterstock.