Neo rallies for third day in a row
The crypto currency markets have experienced a bit of a renaissance over the last several months, as Bitcoin has lead the way as per usual. Now that Bitcoin has exploded to the upside, there are several coins out there that should be trying to play catch-up. With that in mind I have been looking around at alt coins and am starting to notice an overall theme these days, as it looks like crypto currency is starting to come back in vogue.
Neo plays catch-up
Neo has been suppressed for far too long and is now starting to show signs of life again as we see plenty of sideways consolidation over the last several months, one would have to believe that Neo is going to have to rally right along with cryptocurrency as a lot of people will have missed the initial Bitcoin push higher. Quite frankly, Bitcoin is a bit far too expensive for a lot of retail traders, so Neo should be an attractive alternative as it is currently trading near $12.
the technical analysis on this chart is relatively straightforward. We have been bouncing between $7 and $14 for some time. Because of this, it’s easy to draw out a consolidation area that you can play the market from. Ultimately, if we can break above the $14 level, then we will challenge the 200 day EMA but quite frankly I don’t think that will be a big deal going forward as cryptocurrency continues to rally in general. In a sense, this will all come down to what Bitcoin does. Bitcoin is ready to pull back a bit from being overextended, but that should only offer a buying opportunity in that market which is clearly broken out to the upside.
The 50 day EMA pictured in red is relatively flat, so because of this one can infer that the short-term trend is relatively flat. That makes sense as we have been consolidating, but we are starting to see the 50 day EMA drift a little bit higher. That of course is a good sign for the buyers as well.
So the question then will be how far can we go? Based upon a $7 rectangle, one would anticipate a move to the $21 level. This of course is dependent on the breakout, but it certainly looks as if this is going to follow right along with many of the other crypto currencies that I have been following. With that in mind, I am bullish Neo, but I also recognize that a certain amount of patience will be needed.
Another thing that gives me some hope is that a break down to the bottom part of the rectangle suggests that the price of Neo is going to absolute zero. That seems very unlikely, so at this point the technical analysis is starting to work out in our favor again.
Neil looks like it’s offering value on short-term dips and is a relatively cheap coin they makes it easy to build up a larger position.