NEO price analysis: A correction or end of the rally?

 A correction or end of the rally?

NEO has weakened from $20.3 below $17.5 this trading week and the current price stands around $17.9. The price of Neo (NEO) is still far away from the NEO price predictions but if the price jumps again above $20 that could be a very good opportunity for the short-term traders.

Fundamental analysis: One of the Chinese government’s favorite cryptocurrencies

Neo (NEO) is a platform in which users can issue and trade assets, it is often called the Ethereum of China because it has similarity with Ethereum. On this platform, tokens are distributed to prove ownership of an asset, instead of the asset itself.

This makes it more straightforward to transfer shares, equity and assets. This cryptocurrency is a highly liquid asset and it is important to mention that NEO is in the top 20 at CoinMarketCap.

NEO price extended its correction from the recent highs above $25, registered in the third week of September. Despite this, there is no reason to panic and as long the price of NEO is above $16 this cryptocurrency is not in the “sell” zone.

For the investors/traders that are not averse to risky speculative investments, putting a reasonable amount of money into NEO could potentially turn out to be a very good investment. The future price performance of NEO depends solely on the success of the NEO network and the adoption of its technology by developers, programmers, and start-ups.

NEO supports the digitalization of assets and the positive thing is that NEO is one of the Chinese government’s favorite cryptocurrencies.

Technical analysis: Bulls are focused on breaking the resistance level above $20

When trading NEO, you should have in mind that the price could also weaken even more in the upcoming weeks. The technical picture implies that the price reached the bottom, but is it ready for a rebound? Let’s have a closer look at the chart below.

Data source: tradingview.com

According to the rules of technical analysis, the current trend of this cryptocurrency is neutral-bullish. The important resistance levels are $20 and $26, $16 and $14 represent the current support levels.

If the price jumps above $20 it would be a signal to buy NEO and we have the open way to $25. Rising above $26 supports the continuation of the bullish trend and the next price target could be located around $30.

On the other side, if the price falls below $16 it would be a strong “sell” signal and we have the open way to $14.

Summary

NEO can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $100 in the next several years. NEO price extended its correction from the recent highs above $25, registered in the third week of September. Despite this, there is no reason to panic and as long the price of NEO is above $16 this cryptocurrency is not in the “sell” zone.

The post NEO price analysis: A correction or end of the rally? appeared first on Invezz.

Publication date: 
10/04/2020 - 16:58
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Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.