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.
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.