The NEO price is now trading inside a big resistance area. A breakout above the current price could possibly accelerate the rate of growth.
Looking At The NEO Price Chart
A short-term outlook, however, suggests other things. It shows that the price might decrease towards the low of $9. One of the crypto’s full-time trader took to the twitter to give the crypto asset’s chart. He is known as @CryptoMichNL. He stated that the current price movement looks like a bearish retest. According to the trader, the price will then decrease later on.
The Long-Term Movement
On the 10th of December 2019, something happened in the NEO market. On this day, the crypto asset hit a low of $5.32, before starting an upward move. Before declining, the price hit another high of $24.1. The decline made the price to break down below the ascending support line. On the 16th of October 2019, it was then validated as resistance.
Therefore, this can be described as the first bearish retest. This is despite the fact that it has transpired in another time frame as compared to what was outlined in the tweet. The price has since made two higher lows. This has made it easier to follow another different, and more gradual ascending support line. It is dashed on the chart.
The Main Support Area
The main support area for the coin is found between the prices of $5.5 to $6. A breakout below this price could direct NEO to new price lows. At the moment, this might not be the case.
The Bearish Retest
The main resistance price area is around the region of $10.5. This is the medium-term. At the beginning of November 2019, this particular price area acted as the main support. At the moment, the price movement is a bearish retest of the whole area.
As a way of strengthening this particular claim, the resistance area has coincided with the 0.5 Fib level. It is the level for the whole decrease as well as the 200-day moving average – MA. This has, in turn, solidified the resistance.
Possibility Of Breaking Out
There are still certain possibilities that the price could break out. For instance, NEO price could create a cap and fix the pattern. This will give it a new support above the price of $9. It will then make another attempt to break out at this point.
The movement will fit well with the long-term ascending support line. Should the support area fails, then the price will definitely drop to a new price of $8. It will then trade in a range between $8 and $10.5. A price breakout below $8 might invalidate the ascending support.