NEO Price Watch: Another Long-Term Chart Formation

NEO Price Key Highlights

  • NEO has formed lower highs and higher lows to trade inside a symmetrical triangle formation on its 4-hour chart.
  • Price is currently testing support and might be due for another bounce to the top at $38.
  • A breakout in either direction could lead to a rally or a selloff that’s the same height as the triangle pattern.

NEO price is consolidating inside a symmetrical triangle on its 4-hour chart and is currently testing support.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap is narrow enough to signal that a bearish crossover is also a possibility.

A break below support around $34 could be enough to draw selling pressure in and lead to a selloff that’s the same height as the chart pattern. The moving averages appear to be holding as dynamic resistance as well.

RSI is heading slightly higher after dipping into oversold territory, indicating that buyers are taking over while sellers are taking a break. Stochastic is also on the move up but is crossing down halfway through, signaling that sellers might be trying to return.

NEOUSD Chart from TradingView

Market Factors

This week could make or break rallies among cryptocurrencies, as the industry has had a good start for the quarter before gains were returned the following week. The previous week was another positive one, though, as headlines on institutional interest drew more buying pressure for fear of missing out on the surge.

Another round of headlines like those in the previous week could be enough to sustain gains, but negative updates such as hacks or regulatory troubles could dent confidence in the industry once more. Apart from that, dollar strength is another factor to watch out for since this is also strongly affected by sentiment.

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