Day by day, little by little, NEO is slowly preparing itself to make new all-time highs.
Atleast, thats how it seems.
As we’ve seen before, whenever a cryptocurrency’s price surges in value over the course of a few days, it usually comes crashing down almost immediately after.
For NEO, however, this has yet to occur.
Could NEO Re-test $40 Level?
Over the past few weeks, NEO has been on a rather impressive price rally. However, it was only a matter of time before this happened, as NEO’s price surged to almost $60 in mid-August and has corrected nearly 75% since then.
Recent regulatory events regarding ICO’s have caused great uncertainty when it comes to NEO’s future. While it is true that NEO is quite popular among speculators and investors, it still remains unclear whether or not it will sustain any true long-term value.
Nonetheless, it seems that the NEO team is continuing to make solid progress toward creating an efficient, advanced, and adopted smart economy network.
Since mid last week, the NEO/USD exchange rate has quickly risen from just under $20 to $39. While these movements are almost evident in the cryptocurrency world, it still remains unclear whether its current price movement is merely another pump-and-dump scheme, or a prime to reach all-time highs.
Nonetheless, NEO’s price movements have certainly not gone unnoticed.
50% of NEO’s current trading volume is derived solely from the Bittrex exchange, which has been a sustained trend over the past few months. Meanwhile, Bitfinex and Bittrex are still close together in trading volume, indicating a growing demand for NEO in the USD market.
For the time being, it is rather difficult to claim whether or not NEO will break $40 resistance and rally toward its all-time highs. While previous trends prove this movement to be logical, it is important to note that we have already seen some major gains over the past week alone, and ensuring that this bullish trend will continue is not particularly easy. However, trading volume for NEO is continuing to seep in relatively well, and there are no major indicators signalling further price corrections on NEO’s chart.
Lets take a look
Technical Analysis
As shown by the chart above, NEO was hit with a rather steep red candle today, indicating a price drop of nearly 8%. However, this movement should have been quite expected considering NEO’s recent jump from just below $18 to over $37 dollars in merely a few days.
While buy-volume seems to be holding strong, it is important to note that the MACD is indicating the slight possibility of over-bought volume. On the hand, however, it seems that the 12-day EMA is holding its upward momentum quite well, and while slightly diverged from the 9-day EMA, it has yet to show any concrete signs of continued bearish momentum. In addition, the RSI has lost quite a bit of its momentum due to todays correction. Nonetheless, it seems to be continuing to hold its current trend fairly well.
The 50-day simple moving average has been catching up to the NEO/USD exchange rate fairly quickly, and is currently sitting directly below its current price level around $30. This may be signalling an extremely strong level of support for NEO around that price level, as NEO’s slight correction today caused a downward movement with SMA as well.
Therefore, it seems that NEO’s current price action is simply letting off steam from its 2-week long rally. As of today, even with NEO’s 8% drop, there are no solid indications of continued bearish momentum. The RSI is holding momentum fairly well, the 12-day on the MACD is continuing its upward trend with only slight divergence, and 50-day SMA is signalling a possible level of strong support around the $30 rate.
Conclusion
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