Even though I’ve been leaning a little on the market recently, since a lot of altcoins have broken their mid-term uptrends against or even headed back to major support levels…the USD value of many altcoins remains fairly for now. NEO, for instance, is still above $10, despite drifting down to lower supports on the ratio. Much of the recent action on NEO has occurred with massive . Meanwhile, our current selloff is occurring on low . This is exactly what happened with before it went on its major run, where it tripled in USD value in several weeks. Additionally, the consolidation period after the November selloff has also occurred on higher than the .
A while ago, I posted an educational video about why I entered a long term position on at $0.60/1700, and how I was able to spot accumulation (the link to that video is at the bottom). I also saw it occurring with ICX, which is why I posted the video on the pairing. Looking at the chart, we can see that it’s printing a somewhat similar pattern with a similar as well, albeit on a much larger time scale. One of the major differences is that NEO made a higher high before dropping, which indicates that buyers do still exist for NEO. The rejection is a bit more concerning, which tells us that NEO isn’t as strong as , for now. Investors are concerned that NEO will continue to lag behind the rest of the market, as it has really fallen from its former . Here’s the chart from its recent bottom:
I’m presenting this comparison because I think there is still hope for NEO. It’s certainly possible it heads to new lows, but the tells me there is some decent interest at these recent price levels. When rose from $0.50, there wasn’t really any major news to back it up. The market simply decided it was undervalued. I’m still holding my long term position on NEO (having bought it with my back in early January). NEO has still performed better than since then.
Based on my chart, even if NEO is to rise again eventually, it still may need to fall to a lower support (indicated by the red X). After my previous analysis, NEO hit my first target between 2600 and 2700, but only to get rejected hard. The good news is, the 2400 resistance might be a bit weaker now, should NEO eventually get back up there.
Looking at the USD chart, you can see it looks much more than the chart. We have some room to go down there, and we still haven’t broken our uptrend on that pairing. If NEO is to rise eventually, it could take a while to break the $14 resistance, as it was previously major support (that was my target in USD value on the recent run up). The market needs time to accept current prices after such a severe decline, so some consolidation would definitely be welcomed. it would give a good opportunity for buyers to support a new floor for the crypto sphere. Of course, If the uptrend fails to hold, it won’t be good for NEO, or most other altcoins for that matter.
Anyway, this is not financial advice. This is just a post I wanted to make, since I thought it was interesting. I hold both and NEO, and I’m curious to see how they both continue to evolve.
-Victor Cobra
Published at Tue, 16 Apr 2019 16:41:36 +0000
