NEO Price Analysis: A Bullish Pullback Opportunity

NEO Price Analysis: A Bullish Pullback Opportunity 13

NEO has formed higher lows and higher highs to trade inside an ascending channel, with the Fibonacci tool showing the next support zones. Price has bounced off the resistance and could be due to test support from here.

The 61.8% Fibonacci retracement level lines up with the bottom of the channel around $69.50 while the 38.2% level is closer to the mid-channel area of interest. Price already seems to have bounced off the 50% Fib, though, but has yet to form new highs to confirm that the correction is over.

The 100 SMA is above the longer-term 200 SMA to show that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse.

The 100 SMA is also near the bottom of the channel at $68 and the lowest Fib. It also coincides with a former resistance that might now hold as support. The 200 SMA dynamic support is just below the channel bottom and might be the line in the sand in a major correction.

Stochastic is on the move up to signal that buyers have the upper hand and are ready to take NEO up to the swing high and beyond. RSI, on the other hand, appears to be turning south to reflect a return in selling pressure.

NEO Price Analysis: A Bullish Pullback Opportunity 14

Cryptocurrencies have been steadily rising these days on account of positive developments in the industry and the IMF’s push for an even-handed regulatory agenda. However, the dollar is also holding its own as data has been mostly upbeat and Fed officials have supported further rate hikes.

NEO has been gaining traction among altcoins as it holds its spot in the Top 10 in terms of market cap. The project is on its Tour of Europe and is seeing a consistent stream of projects being launched on its blockchain.

*The market data is provided by TradingView.