Technical

NEO Price Watch: Longer-Term Reversal Pattern?

Sarah Jenn | July 19, 2018 | 3:46 am
technical analysis altcoins
Technical

NEO Price Watch: Longer-Term Reversal Pattern?

Sarah Jenn | July 19, 2018 | 3:46 am

NEO Price Key Highlights

  • NEO could be in for more gains as it forms an inverse head and shoulders on its 4-hour chart.
  • Price has yet to break past the neckline around $40 to confirm the potential uptrend.
  • Technical indicators are giving mixed signals at the moment, with oscillators suggesting another dip.

NEO price could be in for a reversal from its downtrend as it forms an inverse head and shoulders pattern.

Technical Indicators Signals

The 100 SMA just crossed above the longer-term 200 SMA to suggest that the path of least resistance is to the upside. In other words, the uptrend could gain more traction from here as bullish momentum returns. These moving averages could also hold as near-term dynamic support levels in this current pullback.

However, RSI has room to head south after turning from overbought territory, indicating that selling pressure could stay in play for a while. Stochastic is also heading lower so NEO price could follow suit.

A bounce off the moving averages and area of interest closer to $32 could still lead to a test of the neckline. A break past this could spur a longer-term climb that’s the same size as the reversal formation, which spans $27 to $41.

NEOUSD Chart from TradingView

Sentiment in the cryptocurrency industry has been mostly positive, following a strong start to the quarter and a pickup in institutional interest reported earlier this week. Some dismiss this as a dead-cat bounce or a short squeeze on profit-taking, but it looks like the mood has been mostly positive.

For one, investors appear to be welcoming regulatory developments in Japan and South Korea instead of previously using these as reasons to close out positions. After all, this could increase security and legitimacy in a growing industry.

Looking ahead, headlines on regulation and investments could continue to impact NEO price action, along with overall sentiment in the financial markets.

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