NEO coin price analysis: NEO coin price is in a downtrend, what will happen next?

• NEO coin price is in a strong uptrend on the daily time frame, and currently, it is trading at $28.05.
• The coin is a forming symmetrical triangle bullish chart pattern on a daily time frame.
• The pair of NEO/BTC is trading at 0.000597 with an increase of 5.28 % in the market cap of the digital asset over the past 24 hours.

NEO coin price is in an uptrend daily and faces continuous rejection of the green trendline, acting as a long-term supply zone.NEO coin price is trading along the Supply zone of $29.67 on a daily time frame. The coin forms higher low and higher high formation on a daily time frame. At present, the coin has bounced off the long-term demand zone on the weekly time frame, and thus if it can break out of the green trendline on the upside, the coin can be seen moving upside. But if the coin breaks the demand zone, it can fall rapidly. Currently, the coin is trading above all the crucial Exponential Moving Average (20, 50, 100) and could take support before moving upwards again.NEO coin price has been trading in a small range from past trading weeks, and thus breakout on either side will trigger the big move. The coin is currently trading at the upper band of the Bollinger band indicator. The Bollinger band’s range has become wide, indicating an impulsive move in the upcoming trading days. Volumes have decreased, and thus momentum on any side will continue for a long time due to less volatility.

NEO coin price is forming a symmetrical triangle pattern on the daily time frame

NEO coin price was falling from the past trading days, forming lower lows. But recently, the coin managed to stay above the previous low despite the selling pressure of the supply zone. As a result, it started trading in a smaller range which led to a symmetrical triangle pattern on a daily time frame.

Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily time frame as it gave a positive crossover. The buyer’s (blue) signal line crossed the seller’s (orange) upside. If the coin breaks out of the green trendline, it can reach $29.50 and above. It is possibly making new highs if the momentum continues.

Supertrend: Recent bullishness in the cryptocurrency market has affected the super trend indicator. The buy signal from the indicator is still intact as it broke down the supertrend sell line with a strong bullish candlestick pattern. If the coin price breaks out of the green supertrend indicator line, the indicator can be seen giving a sell signal. Until then, an investor should remain cautious, looking for short opportunities.

RSI and ADX are showing bullish signs on the daily time frame

NEO coin price is in a downtrend on a larger time frame, and recently it formed a chart pattern. Once the coin breaks out of the pattern, it could trigger a massive move on the breakout side.

Average Directional Movement Index: ADX has been continuously rising over the past trading days, and recently, it slipped below 35, as the coin bounced off the demand zone at $18.75. The ADX curve is seen dipping slightly, and it has turned downwards at present. Thus indicating a halt in the movement of the price and possible change in the structure of the price movement.

Relative Strength Indicator: RSI is trading at 72.85 as the coin forms a bullish reversal pattern. The RSI curve has crossed the 50 halfway mark, and thus, the coin can be seen moving up, as it gave a breakout of the falling wedge pattern. The RSI curve has also gone past the 20 SMA, indicating a bullish momentum for the upcoming trading days.

Conclusion 

As per the price action, the NEO coin price is forming a symmetrical triangle bullish chart pattern. The technical parameters are also suggesting bullish momentum for the upcoming trading days. The investor should be cautious until the coin breaks out of the supply zone or faces rejection at the supply zone and falls back to the demand zone of$138. It remains to see if the coin breaks on the upside or bears trample the price down.

SUPPORT: $18 and $19

RESISTANCE: $31 and $29

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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