- NEO token trades close to the $50 mark after a 60% fall from the 52-week high level.
- Presently NEO trades below all major EMAs- 50, 100, 200 in the 4-hour timeframe.
- The NEO/BTC pair trades at 0.001462 BTC with an intraday fall of -1.48%
NEO token price struggles near the $50 level after the recent rejection from the resistance line. The intraday volume has been declining for the past few weeks. The coin price made a morning star pattern near the correction level, which did forecast a reversal. Investors may consider delaying their entry based on the bearishness showcased by the technical chart.
The crypto asset can be assumed to enter the recovery zone with a recent jump of 80% within a week. Presently, the NEO Token trades at $52.5 with a 4.6% fall in intraday trading volume. The coin ranks at position 29 with a circulating supply of 70.5 Mn NEO coins.
Increasing Selling Volume in 4-hour Opposes NEO Token Rise
NEO token raised more than 80% value within a week and staged an entry into the recovery zone. The coin price is facing the dumping problem, coming up as an obstacle in the path of growth. The bearishness of the technical chart projects a downtrend. However, the support level of $34 and $12 might halt the downtrend. The resistance level of $75 rests above the correction line.
As per the 4-hour timeframe, the coin price is trading below all critical EMAs. The recent death cross opposes the bulls to regain control. EMAs project a downtrend with no signs of recovery for the bulls.
The Relative Strength Indicator (bearish) indicates bearish momentum while heading lower again and trading at 44. The RSI line can continue the fall till it reaches 20.
The ADX represented a stagnancy in trend momentum during the short term uptrend, but as the bears are entering, the momentum does seem to increase the trend. In short, ADX projects a possibility of a strong downtrend.
Conclusion – NEO token price manages to stay above $50, but bulls might not be able to hold this for long. The bearishness of price charts coupled with the bearish technical indicators indicates the downtrend is imminent and inevitable. However, POLY Network has reached the $5+ Billion mark in trading volume. NEO token is a part of the POLY network, and it might help in the recovery of the coin. Investors might want to wait till the price breaks a level.
Support- $34 and $12
Resistance-$75