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NEO has been an underperformer in the ongoing recovery from the lows. It has dropped to the tenth location in terms of current market capitalization.
A lot of imagine that NEO’s possible will be totally realized only in about 3-5 a long time from now, so it would seem to be a great idea to ‘hodl’ the cryptocurrency via the dips.
Let’s appear at the charts and try to examine its long-phrase and short-phrase likely.
Article listing, NEO exchanged palms underneath $1 for a long time. Then, at the conclude of May perhaps 2017, the price tag commenced to increase and strike a high of about $58 ranges in August of very last yr.
Just after these a sharp rally, it was sensible to expect some gain booking, and that is what transpired. Rates corrected to the 20-week EMA but managed to remain over it until eventually early December.
The cryptocurrency again broke out of the array in mid-December, and the up shift topped out around the $200 mark in mid-January 2018. The ensuing correction achieved a reduced of just about $44 concentrations in early April of this 12 months.
If history is an instance, the digital currency rallies challenging, follows it up with a deep correction and after a period of consolidation the up transfer resumes.
In the recent bear section, NEO has done a sharp correction, we can now anticipate it to consolidate for a couple of months and then resume its uptrend the moment again. At the moment, the 50-7 days SMA is supplying guidance, when the 20-7 days EMA is performing as a resistance.
Let us establish the important levels on the everyday chart.
Day by day chart
The NEO/USD pair recovered smartly from the lows but is going through a stiff resistance at the downtrend line and the horizontal line all over the $80 mark. Although the bulls succeeded in breaking out of $80 on April 24, they could not sustain the highs, and the cost dipped back again down below the trendline on the extremely next working day.
Presently, we find a rounding bottom sample, which will complete on a breakout and close over $80 degrees. This has a pattern concentrate on of $115. Yet another risk is that, over $80, there is a small resistance zone between $92.5-$95.5. At the time this is crossed, the cryptocurrency could skyrocket to $140 concentrations.
On the other hand, if the selling price breaks down underneath both of those going averages and $64, it will turn out to be weak and slide again in the direction of the early April lows.
Can we make use of the information and facts over?
How to trade the NEO/USD pair now
Very long-expression buyers can be expecting a couple of weeks of consolidation, but heritage indicates that the subsequent trending shift need to be to the upside. As a result, they can hold out and acquire NEO on dips and keep a cease reduction of $40.
Quick-term traders can wait around for a breakout higher than $85 to create very long positions with stops around $65 degrees.
Traders who abide by us and are long at $64 amounts must preserve their stops on the remaining posture at breakeven. Presently, the cryptocurrency is acquiring assist at the going regular. A bounce and a split previously mentioned $85 must reward the traders immensely. That’s why, keep the place with the designated stops.