Neo continues to grind sideways
As the bitcoin markets have fallen, so have the rest of the cryptocurrency markets. Neo of course was in any different as we have drifted lower and towards the 200 day EMA. However, at this point it’s obvious that the market simply does not have anywhere to be, as we tread water near the $16.50 level. Beyond that, we also have a couple of technical levels underneath that could continue to come in and play their part in this market.
Major handle
NEO/USD
We have recently broke above the major $15.00 level, which of course is a major level for the chart. At this point, we also have the 200 day moving average just below, so that is also a very strong support level. With that in mind it makes sense that Neo should have plenty of support underneath, and therefore eventually we will more than likely have buyers coming in to pick this market up.
A break down below the $15.00 level would of course be very negative, but not necessarily catastrophic as we also have a major impulsive candle starting just below there, as well as the 50 day EMA pictured in red on the chart. I believe at this point it’s very likely that we continue to see more of an upward slant, and if you look at the chart you can even start to make out the idea of a bullish flag or pennant.
Follow bitcoin
The easiest thing that you can do when it comes to trading crypto is to simply follow bitcoin. If it rallies, that tends to have a bit of a “knock on effect” in some of the smaller markets such as Neo. Neo certainly has plenty of support underneath, and bitcoin is currently trading just above the psychologically and structurally important $10,000 level. With that in mind, it makes sense that perhaps we could see a bit of a move higher in crypto overall.
To the downside, it’s not until we break down below the $12.50 level that people will be concerned about Neo. Quite frankly, bitcoin is ready to rally again, so that should be the catalyst for other markets such as this one to go much higher.
The play going forward
The play going forward is going to be relatively simple: simply look for buying opportunities at lower levels as they offer value. In general, Neo should be thought of as “cheap” in going higher.