Quite a difficult and tense situation has arisen in the NEO market. Sellers questioned the strength of buyers, breaking their trend line down. Of course, in the weekly timeframe, the breakdown does not look convincing and buyers have every chance to return the price back in November. However, it should be remembered that buyers have been keeping the trend line since March 2020. Losing control of this line will mean the end of the growth era in the NEO market and the beginning of a long and protracted correction.
In the previous analysis a month ago, we wrote that the critical point for continued growth is around $35. In the event of a loss of control over this mark, the next buyers’ defense wall is near the $22 mark. However, should we be so worried about the implementation of a negative scenario in the NEO market? If we analyze the trading volumes on the weekly timeframe, we see that when the NEO price approaches the critical point, the volumes fall. This is not a strategy of winners.
In addition, the sluggish nature of the price fall tells us that sellers are not yet ready to continue to put pressure on the price at least from the current price range. Therefore, after the stabilization of the BTC market and maintaining the range of $54,000-$55,000, the NEO market is likely to flourish again.
Technical Analysis of NEO in the Daily Timeframe
The closing of the daily candle on 27 October with a large body tells us that the local aggression is not over yet. Trading volumes were increased on 27 October, but this is compared to the candles from September. During this period, the NEO market continued to consolidate. During consolidation trading, the trading volumes are usually always low, so it is not correct to compare them.
Though, if we analyze the trading volumes during the NEO price active growth, these are average from 27 October. Today, 28 October, it is important to see the response of buyers to such a bold price fall. If the daily candle closes no higher than $41.5, sellers will likely try to test the $35 mark by the end of the week. The local critical point that stops the NEO price growth is the $47 mark. By taking control of it, buyers can confidently aim to continue to grow to $120.
The NEOBTC Price Is Approaching the Lower Limit of Consolidation
The weekly timeframe of the NEOBTC chart shows that the correction from May is still ongoing. Very noticeable are the trading volumes, which are lowering every time the price falls. Usually, such a fall ends with a sharp price reversal and the beginning of a new powerful growth wave. Therefore, despite the local negativity in the cryptocurrency market, we expect a strong wave of NEO growth by the end of the year. The first target of NEOBTC buyers is at the upper end of the global consolidation of 0.0024. Breaking this mark up will mean the end of the global correction in the market and the beginning of the NEO bull run.
- Bull Run
- cryptocurrency market
- march 2020
- Technical Analysis