NEO price analysis

NEO/USD long-term trend: bullish

Key resistance levels: $14, $16

Key support levels: $7, $5.5

NEO has mostly been respecting a slow rising channel since the 17th of December from a low of $5.5. The token recorded a yearly high at $11 in February before a move lower. NEO’s steady rise is clearly revealed on the daily RSI. As of the time of writing, the token is trading at around the $9 level.

From a technical perspective, the NEO market is likely to witness a volatility surge which may position NEO/USD in a bearish scenario if price drops below the channel, or rally if the upper bound of the channel is breached convincingly. From a long-term perspective, the important support levels to watch out for are at $7 and $5.5. Bulls, on the other hand, will have to face key resistance levels at $14 and $16. Meanwhile, the channel range holds $8 and $12 as support and resistance levels.

Now, the value of the token is substantially low as the NEO market is still very much open for accumulation with high probability of testing the pre-November drop level at $16. The NEO price now nears the oversold line on the daily Stochastic RSI.

NEO/USD medium-term trend: bullish

For the past three weeks, NEO has carved a rising wedge pattern for a bullish formation as candle sticks build within the range of the trend lines. The token saw a low at $8.3 in early March, which is clearly revealed on the 4-hour RSI - a sign of a strong buying pressure.

Today, the first two 4-hour candles were pin bars, which signals a bullish reaction as a reversal is expected to play out to the upper wedge in a short while, touching the $9.8 and $10.2 resistances in a subsequent move. In fact, the current 4-hour Stochastic RSI suggests a long move at the oversold territory.

Against the above signals, however, a fall could send the price back into bearish territory, re-testing the early March rise level at the $8.3 low. Additionally, touching the upper wedge could result in a break-up as the bulls look ahead to tackle the resistance levels at $10.7 and $11.2.

NEO/USD short-term trend: bearish

Looking at the market from a short-term outlook, NEOUSD appears to be in a downtrend for the past ten days, rising to a high of $10 before creating lower high, lower low moves to test $8.8, where the lower channel lies. The hourly Stochastic RSI reflects a wave on the 80 and 20 lines as NEO slopes down.

After bottoming on the lower trend line yesterday, a bullish retracement is gradually reaching for the upper channel at $9.3. A breach above the channel could strengthen NEO market in an upward direction as $9.8 remains a major target for the buyers. For a break-down, $8.6 is an important area for the sellers. Since the channel formation, however, the hourly RSI reveals a strong decline below the 80 line. The bears are in play for now.

Still, we have to keep in mind that the NEO market is likely to continue to follow the trend line until a surge in volatility can significantly alter the token’s trend.

Latest NEO news

In February, the NEO Global Development team hosted NEO DevCon 2019, the largest conference in the world for NEO developers. You can read a recap of the conference in NGD's monthly report from February, which also outlines some general concepts of "NEO 3.0", the next big step in NEO's evolution.

To see more NEO videos, check out CoinCodex TV.