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NEO Price Analysis: Rising Wedge Pullback

NEO is slowly creeping higher inside a rising wedge formation visible on the 1-hour time frame. Price just bounced off the resistance and might be due for a test of support soon.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with the wedge support. This is also around the 200 SMA dynamic inflection point, which adds to its strength as a floor.

On the subject of moving averages, the 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, support is more likely to hold than to break around $19.

Price is currently testing the 50% Fib which is just slightly above the 100 SMA dynamic inflection point, which might already be enough to keep losses at bay. However, RSI has room to slide before hitting oversold levels, so sellers could stay in control for a bit longer.

Stochastic was already on the move up to reflect bullish momentum but changed its mind halfway through and is setting its sights back down. Price could keep following suit until the oscillator reaches oversold levels and turns back up to indicate a return in bullish pressure.

A breakout in either direction could lead to a rally or a selloff that’s the same size as the chart pattern, which spans $14 to $22.

There’s not much in the way of major catalysts for NEO itself as it simply seems to be riding the same trend as other cryptocurrencies. So far, risk-taking has been present in the financial markets, although this appears to be favoring stocks and commodities more.

Trading volumes have been notably higher in the past few days, though, perhaps on some developments on funds including crypto assets in their portfolios and Yahoo Finance integrating some altcoins in their platform.

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NEO Price Analysis: Short-Term Bullish Formation

NEO failed in its last two attempts to break below $31, creating a double bottom.

NEO bounced a couple of times off the $31 area to create a double bottom, which is often seen as a classic reversal signal. Price has yet to break past the neckline around $35 to confirm that an uptrend is underway.

If that pushes through, price could climb by the same height as the chart pattern or $4 to $39. However, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to carry on than to reverse. Price could still fall back to the bottoms if the 200 SMA keeps holding as dynamic resistance.

RSI appears to be pointing up to show some bullish pressure but might also just be moving sideways. Stochastic is showing clearer upside direction but is nearing overbought levels to reflect exhaustion among buyers. Turning lower could bring selling pressure back in and take NEO to the $31 support or lower.

Cryptocurrencies have had a positive run in the past few days but appear to be running out of steam on the rallies. After all, there have been no new catalysts that could prop prices higher while traders await the SEC decision on the bitcoin ETF.

But even if the regulator gives approval, the positive reaction could be limited to bitcoin itself since it has been hogging most of the gains from its altcoin peers. Besides, traders’ attention is back to stocks and commodities thanks to strong rallies spurred by the trade truce between the US and the EU.

US President Trump and EC President Juncker shook on a deal to hold off further tariffs and resolve earlier ones while they negotiate a zero-tariffs agreement between the two economies. This has been enough to spur a strong relief rally in traditional markets, so it’s understandable that traders are flocking back there to take advantage of gains.

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