Oh dear, oh dear, cryptos are not having a good week so far! We've seen a dramatic follow up to the signal given by crypto commander, Bitcoin, and his troops followed him obediently.
I want to focus on NEO, as it has potential to create some good trading opportunities for all the Bears out there. If you're HODLing...then you probably should not look at the charts for the next 6 months to protect your mental health.
Lets star by looking at where we are at the moment. NEO had dropped a whopping of 40% since it broke out of the symmetric triangle pattern on November 14.
It looks like it has now reached support level at around $9.20 and we can expect to see a consolidation or even a short term rally. There is a bullish divergence on 1hr RSI, that supports the case for a short term consolidation (not guaranteed!).
We're not out the woods yet...not even close. According to the geometry of the pattern we have further near 50% drop to come....what? Did I just say that? I'm afraid so...50% sell off to continue with a final target at around $4.7 for NEO.
The zone around $4.7 is a confulent zone that combines the target from triangle pattern and previous price history, so it is likely to stop there for a longer while.
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