Neo sees a -4.48% price decline over the past 24 hour trading period. The cryptocurrency is now exchanging hands at a price around $5.90, at the time of writing, after suffering a severe -23.53% price decline over the past 7 trading days.
- Neo is defending support located at the $5.84 handle.
- The market has seen a disastrous 63% price decline over the past 30 days of trading.
- Support moving forward; $5.84, $4.61, $3.74, $2.18, $1.61.
- Resistance moving forward; $8.37, $10.17, $11.62, $13.08, $15.14.
The Neo cryptocurrency, also known as the Chinese Ethereum, is now ranked in 18th position according to the market cap rankings as it presently holds a total market cap value of $379 million. The project has seen a precipitous price decline totalling -63% over the past 30 trading days which may be very worrying to many holders as speculators wonder when we may see the ‘bottom’ of the price decline.
The 27 month old project, Neo, is now trading at a value that is 96% lower than the all time high price set earlier this year.
Let us take a look at price action over the recent period and provide some potential areas of support and resistance to watch out for.
Neo Price Analysis
Analysing the market from the daily chart above we can see the extreme impact that the November 2018 cryptocurrency bloodbath caused for Neo holders. The market fell from a high above $18 to a low where it is currently trading at the $5.90 level.
We can see that the market has found some form of long term support as it meets the long term downside 1.272 FIbonacci Extension level (drawn in green) priced at $5.84. This support level has managed to halt the decline slightly but it is not expected to hold if Bitcoin continues to fall further lower.
If price action does break beneath the support identified at $5.84 we can expect immediate support below to be located at the very short term downside 1.272 Fibonacci Extension level (drawn in red) priced at $4.61.
If the sellers continue to drive price action even further below this level then we can expect more support at the medium termed downside 1.272 and 1.414 FIbonacci Extension levels (Drawn in purple) priced at $3.74 and $2.18, respectively.
In the case that NEO/USD breaks below the $2 handle we can then expect further support beneath to be located at the long term downside 1.414 Fibonacci Extension level (drawn in green) priced at $1.61.
On the other side of the equation, if price action can hold above the support at $5.84 and starts to move higher we can expect immediate energy resistance above to then be located at the bearish .236 and .382 FIbonacci Retracement levels (drawn in orange) priced at $8.37 and $10.17, respectively.
The RSI is well below the 50 handle which indicates that the sellers are still in control of the market momentum. IF the RSI starts to rise toward the 50 handle this will serve as an indicator that the sellers are beginning to run out of steam.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.