- NEO currently is catering to the demand after its rise
- The crypto coin is looking bullish after getting out from the accumulation zone it created days ago
- The market cap and volume is on the rise, indicating a strong demand
NEO went through a steep market correction a week ago, decreasing its weekly performance by 1.7%. But quickly enough, the coin recovered with a spike now equivalent to the current price. The market cap is also up by 6.28%, and trading volume grew 61.86%. The volume to market cap ratio stands at 0.1043. The NEO/ETH pair saw an ascent of 3.06%, totaling 0.01014 ETH.
After the spike in price, the token continued to stay up but then created a supply zone and ultimately descended by 30%. But then the double bottom pattern appeared and suggested a trend reversal. This led to the formation of an ascending scallop (yellow curve) and can continue to even form a cup and handle pattern soon if things go as expected. The Exponential Moving Averages like 50, 100, and 200 are running below the current market price. Most of the time, the CMP traded neck to neck with these lines as a sign of stability. Another takeaway from the chart is the arrangement of these lines. The 50 EMA line is catching up with the token’s market price, meaning that a short-term bullish trend may arrive.
Oscillators suggest a good buying zone for NEO
The MACD line is currently staying near the zero line, but trying to climb over. The same can be possible in an upcoming time as the MACD is already above the signal line. Hence, it indicates a good buying period. The RSI levels are currently facing a threat of the token going in the extremely overbought zone due to its high demand. Nonetheless, the current position of this oscillator suggests holding or buying off the asset.
Resistance can be seen at $49.505 and support is at $44.649 and $46.702.
Conclusion- NEO is in better condition and favorable for both short-term and long-term investing. One can think of investing due to its ability to reach the previous hiked price and stabilize. The token may cross the resistance soon if no reversal or correction takes place. Still, it is advisable to personally analyse the asset’s past data before investing.
Resistance- $49.505
Support- $44.649 and $46.702