NEO price technical analysis. NEO rate forecast. Relevant trading scenario for NEO BTC pair. Key points and general market sentiment.
In this post I applied the following tools: fundamental analysis, Japanese candlestick, market balance level, volume profile, oscillators, graphic analysis, trendline analysis, Renko Kagi chart, Line Break chart, Tic-Tac-Toe chart.
I go on my series of crypto forecasts, and today, I’d like to offer NEOBTC analysis. The last forecast, I suggested for neo btc pair, was on July 16th, so now, three months later, it makes no sense to follow that trading idea. I need to revise and update NEO BTC technical analysis. But first, as usual, I’ll share my NEO fundamental analysis.
NEO fundamental analysis
In the previous post I noted that NEO fundamental factors were rather negative. I won’t describe each problem in detail; I’ll only remind you the key points. If you’d like, you can learn more here
- NEO is centralized;
- NEO is going to be divisible;
- GAS inflation is going to be introduced;
- GAS distribution is to be changed to solve the problem of “black hole addresses”.
However, in late September, NGD (NEO Global Development) announced it would launch two new tokens, CNEO and СGAS. Tokens are to be issued in the same amount as NEO and GAS and to be converted at the rate of 1 to 1. This measure aims at solving multiple problems, and the first one is centralization. These tokens will circulate in NEO blockchain, based on the last version of NEP-5 protocol, which has high transaction capacity, 1000 transactions per second, and doesn’t charge transaction commission as in case with Ethereum.
In addition, this protocol supports multiple popular languages. Ethereum supports only its programming language, Solidity. Another project’s innovation is post-quantum cryptography that protects the system from an attack by a quantum computer of the future. Letter C in the name of CNEO means contract, the token provides more smart contract capabilities and can describe complex projects, models and constructions of the real world, that is, it will be possible to turn everything into tokens. Besides, new client NEO-CLI 2.9.0 was launched in September. It is an intermediate version, before NEO 3.0 client is complete, which still provided many advantages. The updated version is compatible with asynchronous data-processing, Akka, new plugins that can improve the network safety and the nod stability.
Moreover, the new version makes the client more user-friendly for ordinary users and facilitates such tasks as opening a wallet, selection of its model, getting application journal. In general, the news should support the rates of NEO and GAS in the long term. It is still not clear the system of CNEO and CGAS tokens distribution; however, if it is limited by only direct conversion to NEO and GAS, it will provide huge demand for the latter ones.
NEO technical analysis
In the NEOBTC monthly chart, the previous September candlestick looks like a doji pattern with rather long shadows and very narrow, hardly visible, body. It is clear in the volume profile, that the last candlestick features an increased trading volume, despite the tiny size of the candlestick itself. It all suggests the price is likely to reverse from the current levels. Even is the October candlestick completes in white bullish colour but doesn’t break through the last highs, it will still be a bullish signal for future buyers. Currently, NEOBTC key levels are the September extremes: low is at 0.0026 BTC; high is at 0.0034 BTC. I also marked the global point of control in the volume profile at 0.004352 BTC with the red line. It is rather important key level. If the level is broken through, it will be one of the first signals of the NEO global trend reversal.
It is remarkable that in the NEOBTC weekly chart above, you see that Keltner channel’s bottom border is at the highest point of NEO growth in September, at 0.0034 BTC; and the monthly point of control coincides with the weekly Keltner channel’s balance line. This coinciding proves the above levels to important and suggests their strong resistance in case of a bullish attack. If you look at the oscillators in the weekly chart, you’ll see that they are already sending reversal signals. MACD is in the green zone, and RSI stochastic is starting to rise and has already exited the oversold zone.
It is clear in the 1D NEO BTC price chart that the situation is still bearish in general. It is indicated by both the price chart that is below the local point of control and Keltner channel’s central line; and oscillators, which are in the red zone (MACD is red, RSI stochastic is approaching the oversold zone).
In the NEO BTC 4H timeframe, all indicators suggest a long sideways moving in the channel between 0.0027 BTC and 0.0030 BTC. Currently, the ticker is approaching the channel’s bottom border; and, according to the patterns in the Renko chart (bottom left one), the NEO price may rebound to the channel’s top border.
In the Range chart with the scale of 1000 Ranges, it indicates the market sentiment to be clearly bearish. It is suggested by both moving averages in the price chart and MACD.
The volume profile in the chart above indicates low trading volume for NEOBTC. Points of controls, consisting of clusters, are broken through and new lows are indicated. In general, all of this means strong sellers, who go on dumping NEO.
Up-to-date EOSUSD price prediction
From a fundamental point of view, I’m sure, NEO token is rather. AS soon as everything is clear with the new altcoins, CNEO and CGAS, the NEO price may surge like it the GAS price did not long ago.
Summing up all the above, the most likely NEO future looks like this:
Within the next two weeks, NEOBTC should go on trading in the sideways trend, bordered by the previous monthly extremes; low - at 0.0026 BTC and high - at 0.0034 BTC.
Inside this broad channel, the ticker will be drawing local sub-channels; the first one is the range of 0.0026 – 0.0028. The most likely scenario suggests that NEO should go on trading down towards the bottom border at 0.0026; next, it may rebound up to the point of control at 0.0028. If it goes above this level, the ticker will paint a new channel in the range of 0.0028 BTC – 0.0030 BTC.
I don’t think the NEO BTC price will go outside the global channel of 0.0026 -0.0034 during this month; however, it can may well enter the upper sub-channel 0.0030 – 0.0034 inside it this months.
It is clear in the chart above that this channel-division fits in Fibonacci levels, so it is proved to be relevant.
That is my NEOBTC trading scenario. Go on following the NEO price and staying informed on the cryptocurrency market and digital assets. I wish my crypto forecasts are useful for you!
I wish you good luck and good profits!
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Price chart of NEOBTC in real time mode
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