NEO has formed higher lows and higher highs, moving inside an ascending channel on its 4-hour time frame. Price has bounced off support but is hitting a ceiling at the mid-channel area of interest.
If this keeps gains in check, another test of support could be underway. A break past 90, on the other hand, could lead to a move to the channel top closer to 100.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume tan to reverse.
In addition, the 100 SMA is close to the channel bottom to add to its strength as support. The gap between the moving averages is widening to reflect strengthening bullish momentum.
However, stochastic is turning lower from the overbought region to show that bearish pressure is still in play. Buyers could return once stochastic hits oversold conditions and turns back up.
Analysts have remarked that NEO is trading inside a supply zone and could be drawn to the 100 mark before buyers book more profits. In that case, another bounce off the resistance could be due, possibly leading to a larger correction for the altcoin.
However, the dollar is weaker against most of its peers as the FOMC statement signaled a slight shift in tone. The Fed removed a line on monitoring inflation developments closely, indicating that they could allow inflation to run higher without tightening too aggressively. The Fed also omitted the part on seeing strengthening economic outlook.
With that, traders are on edge leading up to the NFP release as downbeat results could further weigh on tightening expectations. Stronger than expected data, on the other hand, could lead to a bit of a bounce for the dollar and a correction for atlcoins.
Then again, sentiment in the industry has been mostly positive thanks to developments in regulation and a potential boost in liquidity from institutional investment.
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