by Alex Davies on November 5, 2018

NEO Analysis – resistance breached and more growth expected

NEO is the 15th largest cryptocurrency in the world with a market capitalization of around $1.07 billion. Nevertheless, much like any other cryptocurrency, it is not immune to the swings in the market and a selling spree. After going through a steady decline, NEO has been hovering above the support line (shown in orange on the graph below) for a couple of months now. We took the resilience of the support line as a positive sign and expected the digital asset to have a bullish movement. Nevertheless, the price followed the sideways trend without increasing in value, nor breaching the support line.

NEO Analysis - resistance breached and more growth expected
Starting in the late August, the price movement began to trace out a descending triangle pattern which is shown with the blue and orange lines. This pattern usually means more decline to come. Nevertheless, NEO broke the blue upper line and introduced a positive sentiment in its price movements. This leads us to expect more bullish movement in the future. As the cryptocurrency market as a whole is subject to large fluctuations, this bullish signal is not strong. If the price experiences more decline and crosses the support line, a strong sell signal will be triggered.

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

More content by Alex Davies

Comments (0 comment(s))

Copyright 2020