NEO Price Analysis: Rising Wedge Pullback

NEO Price Analysis: Rising Wedge Pullback 13

NEO is slowly creeping higher inside a rising wedge formation visible on the 1-hour time frame. Price just bounced off the resistance and might be due for a test of support soon.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with the wedge support. This is also around the 200 SMA dynamic inflection point, which adds to its strength as a floor.

On the subject of moving averages, the 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, support is more likely to hold than to break around $19.

Price is currently testing the 50% Fib which is just slightly above the 100 SMA dynamic inflection point, which might already be enough to keep losses at bay. However, RSI has room to slide before hitting oversold levels, so sellers could stay in control for a bit longer.

Stochastic was already on the move up to reflect bullish momentum but changed its mind halfway through and is setting its sights back down. Price could keep following suit until the oscillator reaches oversold levels and turns back up to indicate a return in bullish pressure.

A breakout in either direction could lead to a rally or a selloff that’s the same size as the chart pattern, which spans $14 to $22.

NEO Price Analysis: Rising Wedge Pullback 14

There’s not much in the way of major catalysts for NEO itself as it simply seems to be riding the same trend as other cryptocurrencies. So far, risk-taking has been present in the financial markets, although this appears to be favoring stocks and commodities more.

Trading volumes have been notably higher in the past few days, though, perhaps on some developments on funds including crypto assets in their portfolios and Yahoo Finance integrating some altcoins in their platform.