Although almost every single unstable cryptocurrency in the top 50 (sorted by market capitalization) posted double-digit losses, NEO was able to stay relatively strong and only drop a few percent on the day. The price remained in excellent condition compared to other cryptocurrencies. This is mainly due to the incredible ascent it experienced the day before.
The general sentiment about NEO is pretty bullish, largely due to its fundamentals (project development and signs of a takeover). While it is no secret that NEO correlates with the movements of Bitcoin as much as any other cryptocurrency, the movements based on non-crypto market factors have contributed to its current position. NEO is currently the 20th cryptocurrency by market capitalization and is currently valued at $ 1.49 billion. The cryptocurrency posted gains of 11.68% from the week, while the month-over-month gain was 31.94%.
NEO / USD chart overview
Daily chart overview
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If we look at the NEO / USD daily chart, we can clearly see that it can skyrocket from the $ 14 area to as high as $ 27 in a matter of days. While the current market downturn has offset some previously made gains, NEO is much better off than it was at the beginning of 2021. Additionally, we can see that the 21-day moving average (red line) is exceeding the 50-day moving average ( blue line), which means more upward movement.
NEO / USD is currently struggling to stay above the 38.2% fib retracement level which stands at $ 21.86. This is an important pivotal area, and the outcome of the current battle will determine NEO’s short-term direction. Its biggest resistance is the 23.6% Fib retracement level at $ 23.72, while its closest support level (which already kept the price from falling any further today) is the 50% Fib retracement at $ 20.36.
NEO / USD daily chart
A look at the daily RSI indicator shows that, having barely entered the overbought territory, NEO quickly left and descended.
Overview of the hourly ticket
If we increase the 1 hour timeframe, we can better see NEO rally towards the $ 27 mark. An important point to note is that NEO performed much better at slightly lower volume, while higher volume brought much higher volatility (movements that drove price both up and down). If NEO manages to garner enough bull presence and break above $ 21.86, it will face immediate resistance in the form of the 21-hour and 50-hour moving averages, which prove to be important roles in deciding the short-term Have proven price direction.
NEO / USD 1 hour chart
Although NEO is currently outperforming the vast majority of the market, it’s important to note that its price direction is still highly correlated with Bitcoin. On the other hand, its intensity can be higher when the movements are aimed upwards. Buying and holding NEO could be a great choice for those who trust the team leading the project as well as its primary purpose: to build a bridge between blockchain and business.
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