NEO is finding itself in a similar situation to other coins as it is currently testing key resistance trend line. Given the importance of this trend line i.e. 5 touches on the daily chart in the time window of 8 months, the trend line can be regarded as the bull/bear line that will determine the direction of the price action in the next weeks/months. Another failure to break and trade above the trend line would facilitate more bearishness for the coin and potentially new 9-month low. On the other hand, the price action is suggesting a break may be on the table as the coin trades closely to the trend line, without making any bigger moves to the downside. Usually, this pattern of trading suggests a break is coming as the bears are getting tired. A potential break will clear stops placed above the trend line while any close on the daily basis above the trend line will bring more joy to the bulls. A move to, at least, 38.2% Fibonacci zone is on the cards, while the zone of 50% - 61.8% coupled with the horizontal resistance will likely attract a lot of interest from the sellers' point of view.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.