Background & News

NEO (NEO) has been one of the biggest gainers from last year after it has been rebranded from AntShares. The Chinese project that was built as a competitor to Ethereum, with features that allow the running of scalable decentralized applications, has been the choice of blockchain for many successful crowdfunded projects including Ontology (ONT), Zeepin (ZPT) and Phoenix (PHX).

NEO also appeared in the news recently with the effort to start the decentralization of the chain with the addition of new, community voted consensus nodes. Prior to this, only official developers and founders were able to run nodes until the blockchain got through the testing phase. An interesting thing also worth noting is that Fenbushi Capital has been running a testnet node since April.

Charts

The NEO/BTC chart shows us a potentially good opportunity for some buy-ins. The RSI indicator has formed a second bottom, while the declining price formed a multi-month descending channel starting from the first quarter of 2018. The price bounced from 0.00245, which marks the top of the previous (2017) bottoms price range. The bounce coupled with the rising volume, that reached the near-spring levels, could indicate us that the bottom is forming.

Another solid indicator for the bottom would be the price action, where NEO breaks out from the descending channel and lands into a previous resistance zone for further accumulation. This range is also our short-term target.

The NEO/USD chart from Bitfinex also shows us that NEO reached pre-ATH accumulation price levels. After breaking out from a long-term declining trend, NEO retested the trend from above before moving out sideway with rising volume.

A breakout should be confirmed around the $22 mark, at the top of the zone. Our first targets are at $29, which marks a previous resistance/support line.