NEO Price Analysis: Bulls retrace back to take support at 20-days EMA

• NEO coin is showing rejection near the congestion zone of $10.
• The bears are holding on to the 200-days EMA curve.

NEO coin price is facing resistance near the $10 level. On the top with multiple hurdles, the bears maintain strong positions around the 200-days EMA curve. The bulls might be poised to take support at the 20-days EMA.

Moreover, the correction was not much in favour of bears because the chart looks strong with the ascending triangle formation. The lower trendline has not been breached yet.

Daily Chart Shows Price Rejection

On the daily chart, NEO is yet to push across the resistance. The immediate support is around $8.30.Moreover, the chart is well arranged with bullish cues starting from January, and the coin forms higher highs and lows sequences. NEO has jumped almost 50% in the last 30 days giving rewards to investors.

At the time of writing, NEO is trading at $8.86 with a drop of 5%, while the pair of NEO/BTC is at $0.0004083 satoshis. The trading volume fell by 67% in the last 24 hrs.

The inverted hammer candlestick formed on the top, which would alert buyers. Meanwhile, the last session’s volume indicates that the war persists between the bulls and bears.

Short Term Charts Gave Indication Of Reversal

On the 4 hours chart, for the past few days, the price has moved up with the channel and meets the resistance mark of $10 but is unable to sustain. After that, the short sellers promptly took charge. Multiple indications (inverted hammer and bearish engulfing candlesticks) at the top alert buyers to exit the longs.

RSI: The RSI curve continues to show a steep fall without taking a pause, revealing bearishness on the chart. The curve is now at 44 and looking to drop in the selling area.

MACD: The MACD indicator, after passing the bearish crossover, continues bloodbath and plots red bars. The bearishness increases by triggering more sellers in the last sessions. The MA line goes far away from the signal line, and the size of the histogram also increases. This is a proper indication of bearishness on the chart.

Technical levels

Support Levels:$7.80 and $7

Resistance Levels:$9.20 and $10

Conclusion

NEO coin is heading toward a correction by creating lower highs. The aggressive sellers are interested in lowering prices and looking forward to book profits soon.

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 financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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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