NEO price technical analysis. Cryptocurrency NEO price prediction. Relevant scenario to trade NEOBTC, key levels and the general market sentiment.
In this post, I applied the following tools: all-round market view, Japanese candlestick patterns, market balance level, oscillators, volume profile, key levels, trendline analysis, graphic analysis, correlation.
Today, I would like to introduce a new series of forecasts, devoted to NEO altcoin.
NEO is called the Chinese Ethereum, and that is its main benefit and drawback at the same time. On the one hand, anyone, who is somehow familiar with Chinese culture and way of thinking, knows how strong their spirit of patriotism is. So, as the blockchain develops and popularized among common people in China, NEO will be strongly supported by Chinese people.
On the other hand, China’s authorities seem to have no single strategy in respect of cryptocurrencies; therefore, any measures by China’s regulator with regard to NEO cryptocurrency are taken the most dramatically.
Nevertheless, the Chinese Ethereum is a rapidly developing platform for decentralized applications. NEO developers picked up the new wave of blockchain-based on-line games and launched a contest of designing a game application on the blockchain with the prize pool of 3 500 000 yuan, or 523 000USD at the current exchange rate.
Gaming industry has always been a driver of IT development. Appearance of new best-sellers, like World of Tanks, but with application of cryptocurrency will show millions of users basic principles of blockchain technologies and prove their advantages; it will also attract to the cryptocurrency world new participants and new money form the gaming world.
In general, I think this initiative to be very positive, from a fundamental point of view, and I can’t but wish other Dapp platforms to follow NEO developers.
I’m sure this initiative can attract the attention of the uncovered gamer audience and will create a new driver for the long-term growth.
So, if everything is good with NEO, according to the fundamental analysis, I suggest we applied technical analysis.
For technical analysis, I’d like to study NEO to Bitcoin, to understand its market state.
I will traditionally start with technical analysis in the 1-month timeframe (see NEO price chart above).
I can identify the key levels of last month. It is close level at 0.004835 (orange dots) and the monthly low at 0.004596 (orange line). Even lower, there is the point of control at 0.004352 (red line).
Analyzing candlestick patterns, we can notice the inverted hammer within this month. Although, the month will close soon and the pattern can transform, it sends a bullish signal that there are buyers at the current levels.
In the weekly timeframe, it is clear that the NEO ticker penetrated the close level of last month and rebounded. This fact proves the above indicated levels to be supported.
The ticker is below the market balance level and goes beyond the bottom border of Keltner channel (the borders are marked with purple line).
In the NEO 1W chart, oscillators don’t send clear signals of growth; however, they are now in the oversold zone. MACD is still retains sell signal, but it is close to the bottom edge of the indicator window. RSI stochastic has already started reversal, which is a reason to expect MACD to send a buy signal soon.
You can see in the 1-day timeframe that MACD moving averages and RSI stochastic indicate oppositely directed signals (MACD send a signal to buy, RSI stochastic – to sell). It means that the market sentiment is uncertain and the bearish trend is moving into the sideways range.
Trend analysis suggests that there is a descending channel with a wide resistance zone above (marked with the red-coloured zone) Now, the ticker is very close to the zone, near the weekly Keltner channel borders. If the NEO price consolidates above level 0.00555 BTC, the ticker is growing far more likely to break through the zone and go up to Keltner channel balance level at 0.0068.
Correlation analysis in the NEO chart above suggests that NEO has been following Bitcoin direction since February. But it features a far wider price swings, both for a rise and a fall.
Taking into account, the BTCUSD chart has almost completed a head and shoulders pattern, we have some reasons to expect NEO to rise both to USD and to BTC, which, in general, proves the bullish scenario, suggested above.
In general, NEOBTC is in the global bearish trend; however, currently, there are appearing the first signs of, if not a pivot, then a potential bullish correction, that can yield good results during this month.
The ticker is inside the strong resistance zone. If the price goes below 0.0055 BTC, it will be a good sign of the bullish correction continuing.
The first target of a possible NEO bullish scenario is 0.0061 BTC (the zone is higher than 0.618 Fibonacci from the last rising wave).
The next target is around 0.0068 (the local peak of the last rising wave and Keltner channel moving average).
NEOBTC key levels for the next two weeks:
0.0050 BTC is highly likely to be reached by the price (if the price reaches it, it is necessary to revise the probability of the bullish scenario);
0.0048 BTC can be reached (completely cancels bullish scenario);
0.0046 BTC might be reached;
The price will hardly move lower than 0.0046 BTC.
0.0055 BTC is highly likely to be reached;
0.0060 BTC is likely to be reached;
0.0068 BTC can be reached;
The price will hardly move above 0.0068 BTC.
So, my NEOBTC price forecast is complete.
I wish you good luck and good profits!
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Real-time price chart of NEOBTC
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.