Chinese Ethereum, NEO, Grows By 4% in 24 hours, Is a Bearish Reversal On The Horizon?

Top 3 NEO Coins Creating Buzz In The Market
Top 3 NEO Coins Creating Buzz In The Market

Chinese Ethereum, NEO, Grows By 4% in 24 hours, Is a Bearish Reversal On The Horizon?

  • NEO/USD pair on an uptrend as $13.50 firmly in sight for investors.
  • Chinese Ethereum shines on recent developments by the government in promoting blockchain technologies.
  • A bearish trend reversal on the horizon?

The President Xi Effect?

It has been a successful three weeks for NEO traders as the token, dubbed the Chinese Ethereum, saw a 70 percent spike in price against the dollar as the market reacted to President Xi’s comments on embracing blockchain. NEO/USD currently trades at $11.17 USD, representing a 4.58% increase in the past 24 hours – the largest amongst the top 20 coins. In fact, only VeChain (another China affiliated coin) grew more than NEO in the last trading day – with 13.46% growth.

NEO remains bullish in the bloody crypto market

NEO topped the top 20 cryptocurrencies in growth over the past 24 hours as the bullish sentiments on the coin spur on growth of the coin. Since testing the support level at $10.24 USD on Nov. 8, the coin has seen a mini bull run on price experiencing three consecutive green candles to a current price of $11.17 USD.

Monthly growth of NEO/USD and NEO/BTC pairs (Source: Coinmarketcap)

 

The surge in price comes as the market bears gain strength on major crypto pairs to USD and BTC markets. Bitcoin has struggled to stay above $9,000 levels despite a short run up in price earlier on Monday this week that saw over $5 million shorts liquidated on BitMEX.

An Upcoming Bearish Reversal on NEO’s Price?

However, all is not rosy for NEO as the daily charts form a bearish flag pattern that signals a push towards the $10.27 and $9.19 resistance levels. Bulls are losing strength in their push towards the resistance level at $13.50 USD. The relative strength index (RSI) oscillates downwards at 64 as the market faces an overbought pressure on buyers’ side.

Source: TradingView

Looking at the daily candle charts the current sustained green movement in NEO/USD price is coming to a halt as a death cross forms on the Moving Average Convergence Divergence (MACD). The MA cross is also narrowing showing exhaustion from bulls and a possible bearish reversal on the price.

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Chinese Ethereum, NEO, Grows By 4% in 24 hours, Is a Bearish Reversal On The Horizon?
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Chinese Ethereum, NEO, Grows By 4% in 24 hours, Is a Bearish Reversal On The Horizon?
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NEO/USD pair on an uptrend as $13.50 firmly in sight for investors. Chinese Ethereum shines on recent developments by the government in promoting blockchain technologies. A bearish trend reversal on the horizon?
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Author: Lujan Odera

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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Lujan Odera 90 Articles

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

Follow Lujan @