Neo price is trading inside a contracting range pattern below $32.00 against the US Dollar. NEO/USD might soon make the next move either above $32.00 or below $25.00.
Key Talking Points
Neo price is trading in a major contracting range with support above $25.00 and resistance near $32.00 against the US Dollar.
There is a major bearish trend line forming with resistance at $31.00 on the 4-hour chart of NEO/USD.
The pair might soon make the next move either above $32.00 or below $25.00.
Neo Price Chart Analysis
There was no major upside move in Neo price above $32.00 and $34.00 resistance levels against the US Dollar. Earlier, there was a downside move initiated from the $39.00 swing high and the price declined back below $30.00.
A low was formed at $24.87 and the price started moving back higher. It traded above 23.6% Fibonacci retracement level of the last decline from the $39.00 high to $24.87 low. However, the upside move was capped by the $32.00 and $34.00 resistance levels.
Moreover, the 50% Fibonacci retracement level of the last decline from the $39.00 high to $24.87 low is acting as a key barrier for an upside drift. There were many false spikes above $32.00 and there is a major bearish trend line forming with resistance at $31.00 on the 4-hour chart of NEO/USD (data feed from bittrex).
On the downside, the $25.00 and $26.00 support levels are holding further losses. The pair is currently below the 100 simple moving average (H4) at $27.10 and might test the $26.00 support.
However, the decline should be limited as long as the $26.00-25.00 support area is intact. It seems like there is a contracting range forming with resistance at $31.00 and $32.00, and support on the downside at $25.00-26.00.
At the end, the pair has to break either $25.00 or $32.00 to make the next move. A 4-hour close above $32.00 would ignite an upside wave toward $40.00.
On the flip side, a break of the $25.00 support might push Neo’s price back toward $20.00.
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