Neo continues to grind sideways
In the cryptocurrency world, we have seen a lot of stagnation over the last several months, as Bitcoin continues to do very little. This has a knock on effect at all levels, and of course Neo is going to be no different.
Neo sitting at the 50 EMA
Neo continues to sit at the 50 day EMA which has now flattened. While that’s a very quiet turn of events, and will keep some traders way, longer-term traders are going to be paying attention to this as a flattening of the 50 day EMA is a good sign after such a negative market. Crypto fell rather significantly over the last year or so, and now that we are sideways the question then becomes whether or not we are forming a bit of a base?
Trench and trend changes happen slowly
Keep in mind that trend changes are slow events most of the time, especially when they are going to hold for a long term. The market has been sideways for several months, and now that we have done that it’s likely that it’s only going to take a simple catalyst to send this market higher. Pullbacks at this point should continue to attract a lot of support near the $5.00 level, which I currently see as the “floor” in the market.
As we drift sideways, it’s likely that people will become more and more comfortable with the idea of owning Neo, and that of course will help a lot. Remember, a lot of the demand for Neo comes out of China which has been a bit of a mixed bag as of late. At this point, the market continues to look very bullish for Neo longer-term as a development platform but the cryptocurrency markets have been negative for some time so it’s going to take a certain amount of confidence building to send this pair higher.
The US dollar of course is half of the equation here, so you should pay attention to how the greenback is doing. The market continues to be mixed for the greenback, as we have seen so much volatility against the Euro, the Australian dollar, the British pound of course, and the New Zealand dollar. With all of these things being choppy, it makes quite a bit of sense that half of the equation for the Neo/USD pair will continue to bounce back and forth. However, as the US dollar starts to roll over a bit, and I do think that it will, it’s very likely that Neo could be a beneficiary.
The main take away
Looking at Neo/USD, it’s likely that we are in an accumulation phase, and that of course means that people are slowly trying to build up the position to start picking up Neo “on the cheap.” If we were to break down below the $5.00 level, then it would be very negative. However, I don’t think that is likely to happen considering how resilient this pair has been since at least November. Also, you should pay attention to Bitcoin, because if it breaks out that will drag Neo right along with it.