- Buyers are strong enough to hold the price over the 200-day EMA.
- The NEO price has shown weakness for the past 2 weeks and is down by 30%.
The chart structure displayed weakness since mid-April and could not reach the last swing high. The NEO price has been rising by taking support on the trendline, and currently, it has dropped back to the trendline by registering a 52-week high.
In the last week of April, the asset price triggered a breakout from the 20-day EMA but failed to sustain and dropped by 20% in just 3 days. Since September 2023, the NEO price has performed positively and gained around 250% but was able to sustain the high, and profit booking was observed.
Volume Has Dropped Sharply: Price Vs. Volume Analysis
The trading volume dropped by approximately 85% last month, and the NEO price has also been correlated. In the past 3 days, the price has witnessed a sharp fall, but the trading volume hasn’t decreased accordingly.
An increase in trading volume may lead to a pause in the price fall. Suppose the trading volume keeps increasing, and a trend reversal can be expected.
Social Dominance and Development Activity Analysis
According to the graph, social dominance and development activity in NEO crypto have decreased since February.
The interaction and awareness have remained constant at press time, and no considerable development activity has occurred in NEO crypto, as shown in the graph.
NEO Price Rising By Trendline: Will It Manage to Defend the Trendline?
The NEO price chart shows that the price has been rising because of support from the trendline. At the time of writing, the asset price has fallen back to the trendline after a bullish momentum.
Assuming the digital asset price consolidates on the trendline for some time and forms any bullish candlestick, it may gain bullish momentum in the short term. If the trading volume supports the buying momentum, it may remain bullish for a long time.
In contrast, profit booking on a larger scale can be detected if the price triggers a breakdown from the trendline after the consolidation. Strong selling pressure can be seen soon if the investors prefer to book profit.
According to the technical indicators, the MACD has formed continuous histograms, and a death crossover has been generated between the MACD line and the Signal line falling below the Zero line. The price has dropped below the 20-day EMA, which indicates the sellers’ strength.
However, the price is over the 200-day EMA, which shows the buyer’s involvement.
Conclusion
NEO price has been in a downtrend for the past few weeks but is currently consolidating on the trendline. If the price forms any bullish candlestick on the trendline with support from the trading volume, it may gain bullish momentum for the short term.
On the other hand, if the price triggers a breakdown from the trendline, profit booking may soon follow. The MACD indicator has formed continuous histograms, and a death crossover has been generated between the MACD line and the Signal line falling below the Zero line, indicating the seller’s strength.
Technical Levels
Resistance: $19.25 & $22.00
Support: $13.00 & $10.00
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.