NEO has been trending lower since breaking below a rising trend line and complex double top. Price has completed its retest of these areas of interest and is setting its sights on the next support zones.
The Fibonacci extension tool shows where NEO might head next, with the 38.2% level lining up with the swing low at $58. A break below this level could take NEO down to the 50% extension at $54.54 or the 61.8% extension at $51. Stronger selling pressure could lead to a move to the 78.6% extension at $46.17 or the full extension near the $40 major psychological mark.
The 100 SMA has crossed below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse from here. The 100 SMA also lines up with the recent pullback and could hold as dynamic resistance in another bounce.
RSI is on the move down but is nearing oversold levels to signal that a return in bullish pressure is in order. Stochastic is also heading south to signal that sellers are in control, but the oscillator is also approaching oversold territory.
NEO continues to make headway in its partnerships in China, acting as a rival to ethereum and other altcoins. However, it seems to have been hit by the recent wave of declines in the industry as investor optimism has turned lower.
Dollar demand has also dampened cryptocurrency gains as revived expectations of rate hikes lifted bond yields. Although April retail sales disappointed, the components revealed a pickup in price levels and the March report enjoyed upgrades.
Looking ahead, sentiment might remain the biggest driving factor for NEO price action to the dollar as there are no major reports due from the US economy next. A return in optimism in the industry could pave the way for a strong bounce.
Powered by WPeMatico