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The surge in selling pressure with the bearish clouds all over the crypto market forces a selling spree in NEO, soon to drive the market value under $10.
Key technical points:
The market price has decreased 1.69% over the past 24 hours.The rejection from the 50-day EMA breaks under the support trendline.The 24-hour trading volume of NEO is $409 Million, indicating a hike of 323%.
Past Performance of NEO
The 65% downfall in the previous couple of months took support at $9.50 to start a bullish reversal with a higher low formation streak. The reversal formed a support trendline and gave rise to an ascending triangle pattern in the daily chart. However, the reversal rally failed to surpass the 50-day EMA resulting in a downfall under the support trendline.
NEO Technical Analysis
NEO prices crack under the support trendline with a downfall of 4.56% on 11th June, followed by a retest on Sunday. However, the sellers quickly take back the control resulting in a bearish candle of 13.40% at press time. The crucial Exponential Moving Averages – 50, 100, and 200-days maintain a bearish alignment with the 50-day EMA acting as a bearish spark plug. The MACD and signal lines fail to sustain the bullish spread resulting in a high possibility of a bearish crossover. And the RSI indicator shows a high supply zone near the halfway line as the uptrend fails to surpass it despite multiple attempts.
Hence, the technical indicators display a rise in selling pressure, driving prices under $10. In a nutshell, the NEO technical analysis forecasts a high possibility of a correction phase driving the prices under $8.
If the selling spree continues throughout the day, the bearish candle will close under $10 and reach the $8 support level by tomorrow. Moreover, the breakdown of the $8 level will drive the death spiral to $6.85.
Resistance Levels: $12 and $13.5
Support Levels: $8 and $6.85