Technical analysis of NEOBTC price and NEO and the forecast for the NEO cryptocurrency
Up-to-date trading scenario for the NEOBTC pair; points of control, NEO key levels, general market sentiment.
In this post I applied the following tools: fundamental analysis, all-round market view, market balance level, volume profile, graphic analysis, trendline analysis, key levels oscillators, candlestick pattern, the Kagi and the Tic-Tac-Toe charts.
Today, I’d like to offer you my NEO price analysis. It has been more than a month since my last NEO price forecast and it is necessary to update NEO trading scenario, suggesting you new NEOBTC trading ideas.
Unfortunately, since my previous forecast, the NEO altcoin hasn’t been performing that well.
You can see my last NEO forecast, dated 05.10.2018 in the chart above. It suggested a sideways trend at the current levels with a slight drawdown. Ahead the upcoming upgraded version NEO 3.0, I expected the instrument to be week.
However, in fact, NEO turned out to be even weaker, than I had expected. Finally, the NEO price has dropped almost as low as the August low at 0.002328 BTC.
To estimate the NEO middle-term outlook, I’ll conduct a short fundamental analysis.
NEOBTC fundamental analysis
I’ll start with the previous topic about NEO 3.0
Remember, this new version is associated with the following innovations:
- NEO centralization problem is to be solved
- 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”.
I described each point in detail in one of my previous NEO forecasts. So, not to repeat myself, I suggest you read it here.
Frankly speaking, I don’t attentively monitor the news from NEO developers. But the NEO downtrend inside the current consolidation and no news on the official Twitter account, @NEO_Blockchain, suggest that the upgrading is up in the air and none of the promised innovations have been introduced.
Another news bit, deserving attention, is a soon NEO “fork”. I used the inverted commas for fork deliberately, as there can be no division of the NEO network, in fact, because NEO uses the dBFT consensus mechanism to achieve "Byzantine Fault Tolerance" between nodes in consensus system.
To be honest, I have never come across this practice before. Basically, there is going to be a new Ethereum-based altcoin that has nothing in common with NEO, except for the copied and a little corrected Whitepaper. The project’s team is completely hidden from the public; there are only fake profiles on the Linkedin.
I don’t write the coin’s name on purpose, in order to avoid advertising this dubious project; if you wish to know it, you can find the information about it on the Internet. Nevertheless, I’m sure that even such a doubtful project will find its supporters, willing to take part in this “Fork”. It is going to be launched on November 10, and, after it is completed, there will be issued altcoins in 2-to-1 ratio, that is, each holder of one NEO will receive two coins from this project.
NEOBTC technical analysis
As you see from the monthly NEOBTC price chart above, October 2018 was closed quite badly, breaking through the lows of the previous month, September. In addition, the upper border moved to the level of the September close at about 0.002862 BTC. Besides, it is clear that the market point of control is extremely far, at 0.004308 BTC; it suggests strong market imbalance and powerful sellers.
In the NEOBTC weekly chart above, you see a long sideways trend, looking like a series of three doji candles, not including the recent week, which are at the level of 0.002345 BTC.
Oscillators in the chart are indicating weak positive, showing no signs of strong growth.
In the daily chart of NEO to BTC price, it is clear that the ticker is in the descending sideways trend. RSI stochastic is indicating continuous overbought; and MACD is showing a rounding, not having reached zero level. All of this means that buyer are weak, and a connection may develop towards the channel’s bottom border and the October monthly support levels at 0.002345 BTC.
In the 12-hour chart above, the above situation is obviously confirmed, but with stronger bearish signals. MACD is already in the red zone; and RSI stochastic has left the overbought zone and is directed downside. The ticker itself has rebounded from the channel’s top border and is going down, having broken out the local micro trend.
Based on the Kagi chart above, the NEOBTC ticker is exactly at the support level of about 0.002540 BTC. The next support is as low as at 0.002403 BTC, which basically confirms the bearish scenario. The way up is blocked by multiple resistances next to each other in the zone around 0.0026 BTC.
In the Tic-Tac-Toe chart above, there is a clear downward channel with the local support level at about 0.002378 and the resistances at 0.002668. Based on this picture, the NEOBTC is still trading in the bearish trend, and might go up, not higher than 0.0029 BTC; but is rather likely to go down towards the channel’s bottom border in the zone of 0.0024-0.0023 BTC.
Up-to-date NEOBTC price forecast
Taking into account that there isn’t so much negative in the market amid the performing of the fake “hardfork”, the NEO price may rebound towards 0.0026 BTC. However, in general, the price is still highly likely to slide down in the bearish trend towards the channel’s bottom border.
The target for bears is at about 0.0023 BTC. Pointlessly optimistic bulls shouldn't aim at the level, higher than 0.0026 BTC, provided the cryptocurrency market goes a little up, which might hardly occur soon.
That is my forecast for NEO to Bitcoin price for the next few weeks. Read my forecasts for Bitcoin and other digital assets in the trader blog. Go on following the cryptocurrency rates and staying informed on the cryptocurrency market. I wish my crypto price forecasts are useful for you!
I wish you good luck and good profits!
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.