NEO Retraces To Significant Support – Analyst Suggests An Upward Move Awaits

2019-11-29 19:03

NEO was the first from a group of coins based in China which broke out in late October. The current price structure suggests another price increase awaits.

The NEO price broke out above its trading range on October 27 and increased until November 13. It has been decreasing since. On November 29, it returned to a significant support area and has been consolidating inside it since.

Cryptocurrency analyst and trader @damskotrades suggested that the NEO price has retraced to the origin of the breakout.

$NEO || $BTC Binance @Altcointraders_

Retraced after T1 & T2.
Back into the zone of interest:
– Fresh support at key level
– Origin of the break out pic.twitter.com/31jaqRQoZX

— CryptoAmsterdam (@damskotrades) November 29, 2019

This level represents an interesting zone since it would be customary for the price to continue its upward movement after a retracement such as this.

Let’s take a closer look at the NEO price movement and see if that will indeed occur.

Breakout

The NEO price traded between 8500 and 10,000 satoshis for 81 days between August and October.

The first breakout ensued on October 27. The second breakout followed two weeks later, when the price made a rapid move above 12,500 satoshis. After reaching a high of 15280 satoshis, the NEO price returned to the current support area

The next significant resistance area is found at 17,000 satoshis. If we use a standard five-wave Elliott formation, then the NEO price has just completed the fourth wave — which ended right at the top of the first one. The fifth and final wave would likely take us inside the resistance area.

Looking closer, we can see that a bullish cross between the 50- and 100-day moving averages (MA) has just occurred. Additionally, a cross between the 50- and 200- is close to occurring. Both of these are bullish signs.

Since the NEO price is trading above all of them, it is likely to find support and continue moving upward.

Descending Channel

In the short-term, we can see that the NEO price is trading inside a descending channel and has created a bullish divergence in both the RSI and MACD. This suggests that an upward move is near.

A strong breakout from the channel could indicate that the fifth wave has begun.

To conclude, the NEO price has retraced all the way to a significant support area. Technical indicators and previous movement suggest that the price will bounce and initiate another upward move.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Images courtesy of Shutterstock, TradingView.

The post NEO Retraces To Significant Support – Analyst Suggests An Upward Move Awaits appeared first on BeInCrypto.

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