Can NEO launch rockets?
For today’s selection, we have chosen NEO as our currency to provide you with a detailed analysis of whether the market will decide to move up or down.
This time, we used the monthly timeframe for the market overview and the daily timeframe to find the perfect price for the execution. It may take a few days to see NEO price changes based on our analysis as we are using the daily timeframe as the primary timeframe.
As you can see from the chart, we have segregated prices by monthly timeframes using key levels. What is “primary level”, you might ask? Key levels are another term for “support and resistance”.
From the beginning of December 2018 until January 2021, the price was traded inside a parallel channel where the levels 5 and 20 USDT acted as monthly support and resistance levels respectively.
In February 2021, the price successfully broke this channel formation to advance by leaving a very large bullish candlestick where the price reached 55 USDT.
After this move, the coin became stuck and faced stiff resistance by the previous low volatility around the 45 USDT mark. This causes heavy selling pressure and keeps the market below the 45 USDT resistance.
Now, let’s move on to a lower timeframe for a better understanding of what might be going on with
price of NEO coin.
We will start by looking at the first scenario, which is buying long Neo coin. The price is trading in an extended diagonal ending where price finds buyers around the 61.8% Fibonacci retracement level at 32 USDT. This resulted in an upward move and the price tested the 45 USDT mark. Lower
The correction has been brought to the trendline support, which could trigger a move up again and break out of the resistance at $ 45. If this happens, we have to wait for a retest of new support at 45 USDT (the previous resistance) and then, based on price action above this level, we should consider a long position. .
If the price fails to break the resistance of 45 USDT, the long-term scenario will be of no value and we should consider shorting the NEO coin. As we can see from the following screenshot, the price is forming a probable bearish channel where there is high selling pressure around the 45 USDT mark, represented by
bearish candlesticks have large orange bodies. If our analysis is correct and the price starts to drop, the next target for the NEO coin will be 32 USDT. Furthermore, if the sellers are strong enough, the 32 USDT support can be broken and the NEO price can reach the 20 USDT level, which is located at the lower end of this bearish channel.
Indicators are used for our analysis
We have used the most popular models for this analysis, which are the planar that expands and the formation of a descending channel. We have combined these patterns with price action and market structure to come up with scenarios that show how the NEO coin is likely to move.
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