Here’s the technical analysis of NEO’s (NEO) price, which is currently making around $55.13, as reports Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
NEO has been falling down since January 16, 2018. In mid February, the digital coin attempted to enter a sideways channel, but that was very soon broken out, followed by another massive selloff.
NEO has been getting much cheaper since Feb 28, that is, for over 30 days, losing around 60% over that period. Such high volatility is common with cryptocurrencies, this is the price for the risk, as Dmitriy Gurkovskiy, Chief Analyst at RoboForex, affirms.
Long term trend is descending for NEO, which is well confirmed with the charts. The mid term outlook is negative, too, with the first significant support at $49.16 (Mar 18 low), the second one at $31.62 (Dec 22, 2017), and the third one at $28.75.
The altcoin is still much under pressure, which may lead to NEO falling to $16 or $13. The crypto is of course oversold, but there are no events capable of helping NEO rise.
As for the short term outlook, the cryptocurrency has recently attempted to reach the resistance at $60.29, but the breakout turned out to be a false one, and the price sank again. Today, NEO is trading around $54.13, and the selloff is quite active.
Before it goes above the resistance at $60, there is no room for any growth or bullish trends whatsoever. In case this happens, the next resistance level is at $85, and then, in theory, the price could head towards $140. This scenario, however, seems to be very much unlikely for now.
Meanwhile, the MACD is still in the negatives, issuing a sell signal; the Stochastic is headed down and confirms the same.
There are not so many fundamental news capable of influencing NEO price, with some general pieces of news related to cryptocurrencies on the whole prevailing. Among some positive news is that NEO company continues working with the Chinese regulators. In this light, NEO is developing some solutions that could be used for forming smart contracts with real assets.
Furthermore, NEO has recently received a patent for interchain compatibility model, which can be used for boosting transaction speed. At the same time, NEO is working to cooperate both with exchanges, such as Binance and Coindash, and with ‘real’ companies. Also it had been rumored that NEO is working with Microsoft to develop a new kind of product, but the rumors didn’t prove to be true.
As for the negative news, NEO is suffering from the cryptocurrency ads ban in social media, just like all other altcoins. Such bans were first issued by Facebook and Google, later Twitter has also joined them. The processes limiting the virtual currency advertising could well be just beginning, and may become very much stronger when moving forward.
Disclaimer: Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.