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Neo Price Analysis: Why $26.00 is Important for NEO/USD?

Neo price is holding an important support at $26.00 against the US Dollar. NEO/USD has to clear $34.00 to gain upside momentum.

Key Talking Points

  • Neo price is trading above a major support at $26.00 against the US Dollar, but remains at risk.
  • There is a bearish trend line forming with resistance at $34.00 on the 4-hour chart of NEO/USD.
  • The pair must hold the $26.00 support in order to avoid any major declines in the near term.

Neo Price Chart Analysis

During the past few days, we saw a couple of swing moves in Neo price towards $26.00 against the US Dollar. The price started a downside move from the $39.20 swing high and moved below the 23.6% Fibonacci retracement level of the last wave from the $13.20 low to $39.20 high.

However, the downside move found support near $26.00. The stated $26.00 support is a monster barrier for sellers and it has prevented declines on many occasions recently. It also represents the 50% Fibonacci retracement level of the last wave from the $13.20 low to $39.20 high.

neo price chart

Clearly, the $26.00 is significant for the current trend. Should there be a break and close below $26.00, there could be more declines towards $23.00. The next major support is close to the 61.8% Fibonacci retracement level of the last wave from the $13.20 low to $39.20 high.

On the upside, an initial resistance is near the 100 simple moving average (4-hour) at $31.50. Moreover, there is a bearish trend line forming with resistance at $34.00 on the 4-hour chart of NEO/USD (data feed from bittrex).

It seems like there is a contracting range forming with resistance near $34.00 and support at $26.00. A break on either side is imminent. As long as the price is above $26.00, it might break the trend line resistance.

Alternatively, if the bearish sentiment get holds, there can be a downside break towards $23.00-22.00. Traders can keep an eye on the mentioned support and resistance to get into the next move.

Trade safe traders and do not overtrade!

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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