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NEO, the ‘Chinese Ethereum’ platform, continues to stray outside of the top 10 cryptos by market capital, with a further 0.77% dip against its BTC pairing today.
The NEO token is now currently valued at $59 after 2 weeks of poor performance. This is one of the lowest prices we have seen the asset all year, with a total loss of -69% from it’s all-time high of $196 set back in early January this year.
But while this all seems like doom and gloom, there promising signals on the horizon that we could be about to see some life return to the alt-coin.
The Story Up Until Now
Over 3hr candles, we can see NEO broke bearish from it’s earlier achieved all-time high after completing a H&S pattern (yellow curved lines) at the start of Q1. From there we saw the asset continue to downtrend throughout March, until it eventually found the bottom along the 0.236 fib level at 0.0066BTC, and began to make a recovery.
During the bullish reversal, NEO oscillated mostly inside the channel between the 0.382 fib support and a strong resistance at the 0.5 fib level above.
For a brief moment, the alt-coin broke clear of the channel ceiling and retraced to $90 near the 0.618 fib level. Heavy selling pressure from exiting traders however, collapsed NEO’s advance towards $100 and quickly sent the asset tumbling back to $85.
Since then we’ve seen the asset continue to pass below the aforementioned fibonacci levels, to a new support area around 0.007BTC (upper white line).
The News Now
In the chart above we can see a potential bullish double bottom beginning to form in NEO’s price activity (circled areas), as the token’s value begins to trace back towards the same region it springboarded from before.
For now, we just need NEO to pass below the 0.007BTC line, into the area between the two white lines, to confirm this reversing pattern. Looking at the exponential moving averages (EMAs) we can see that the 22EMA (yellow) is still falling below the 50EMA, which in turn is below the 200EMA (red). This confirms that for now, selling momentum is continuing to drive down NEO’s price closer toward our breakout zone.
We should see the token fall back on the 0.0066BTC support (around $54 at current BTC value) fairly quickly once it drops below 0.007BTC, as impatient short-term traders pull out of NEO into some of the better performing cryptocurrencies (for now), making gains in the market today.
I suspect we could see a very bullish response amp up too once Asian investors start to rally in support.
NEO Price Prediction
From the 0.236 fib level at 0.0066BTC, we should expect the first price target to retrace towards the 0.5 fib level at around 0.0091BTC (38.52% ROI).
Our second price target will likely be around the 0.011BTC area, which has been a strong resisting level over the course of NEO’s price history. A run up to this level will deliver a 66.67% ROI from the 0.0066BTC line.
Read more: https://cryptovest.com/news/neo-technical-analysis-neobtc-lining-up-for-a-double-bottom-rebound/
