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

 A correction or end of the rally?

NEO has weakened from $19.2 below $13.5 in less than thirty days and the current price stands around $15.4. The price of Neo (NEO) is still far away from the NEO price predictions but if the price jumps above $16.5 that could be a very good opportunity for the short-term traders.

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

NEO price extended its correction from the recent highs above $19.2, registered in the third week of October. When trading NEO, you should have in mind that the price could also weaken even more in the upcoming weeks.

The current trend of this cryptocurrency remains bearish and NEO is eying to $15 as the downtrend continues. 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.

The transaction volumes of this cryptocurrency are expected to increase and once this happens, the price of NEO will be at higher price levels. The rise of Decentralized Finance (DeFi) is gaining momentum and investors in this cryptocurrency are able to gain income from their assets through DeFi tools.

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: Bears are focused on breaking the support level at $15

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

On this chart, I marked important resistance and support levels. The important support levels are $15 and $14, $16.5, $18 and $20 represent the resistance levels. If the price jumps above $16.5 it would be a “buy” signal and we have the open way to $18.

Rising above $20 supports the continuation of the bullish trend for NEO and the next price target could be located around $22. On the other side, if the price falls below $15 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 supports the digitalization of assets and the positive thing is that NEO is one of the Chinese government’s favorite cryptocurrencies. When trading NEO, you should have in mind that the price could also weaken even more in the upcoming weeks. If the price falls below $15 it would be a strong “sell” signal and we have the open way to $14.

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

Publication date: 
11/14/2020 - 12:23
Author: 
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.