- NEO token price breaks the solid support level of $42 with the clear intention of hitting the $25 mark.
- The coin price is trading below all critical EMAs in the daily technical chart erasing any possibility of EMA support.
- The NEO/BTC pair trades at 0.001223 BTC with an intraday fall of -4.39%
NEO token price has been resonating within a descending triangle after facing rejection from the $75 mark. The triangle was supported by the $42 mark avoiding any downfall, but the increased bearish sentiments finally broke through the level.
The coin price is trading below every critical EMAs- 50,100 and 200, with a recent bearish crossover of 50 and 100 EMA. Furthermore, to make matters more bearish, the possibility of a death cross is rising. Therefore, analysts suggest delaying any long side entry and waiting for more discounted rates.
The crypto asset could give a 35% fall predicted by the analyst’s post-retest. However, the failure of retest might result in a sideways movement rather than a bullish one.
Presently, the NEO Token price is valued at $41.89, with an 8.39% fall in market cap in the past 24 hours. The selling pressure increases as the price digs below the pattern. The intraday trading volume has risen 7.72% in the past 24 hours as the selling pressure increases.
The NEO coin still dominates 0.21% of the crypto market, making it a strong investment currency. However, the recent fall will provide smart investors to buy the token at a very low and discounted price.
The NEO Token Price Fall Is A Blessing In Disguise For Smart Investors
NEO witnessed a major bull run soon after its launch as it provided an attractive alternative to Ethereum, resulting in the coin price reaching its all-time high of $196.85.
However, the crypto market soon started a downtrend followed by hibernation and slept till early 2020.
In 2020, NEO token price was massively influenced by the crypto market crash due to the pandemic and dropped to the $4 mark in March 2020.
However, it regained ground by September 2020 and promptly started a bull run, rallying strongly with the rest of the crypto market.
NEO has given strong proof of its potential, reaching the $100 mark after hitting rock bottom of $4. The coin price has observed a great fall that might continue till it hits the $25 mark.
Furthermore, the bearishness showcased by the technical indicators and the price action does not say otherwise. Therefore, the recent fall will only generate a smart entry position for intelligent investors.
The support level of $25 and $12 might halt the downtrend. However, if the price reverses, the resistance levels of $50 and $65 could oppose the bulls.
As per the weekly technical chart, the coin price is trading closely with the 50 EMA that might break soon. The 100 EMA below the price might help the bulls to regain control of the trend, but the underlying bearishness might not let it happen.
The Relative Strength Index Indicator (bearish) indicates bearish momentum as the RSI line is dipped and heads deeper into the oversold zone.
The ADX represented a rise in trend momentum as the price breaks the triangle to dive deeper.
In a nutshell, ADX and RSI project a strong downtrend with little to no support from the EMAs.
Conclusion – NEO token price manages to stay above $50, but bulls might not be able to hold this for long. Furthermore, the increasing bearishness in the technical charts and the bearish technical indicators project a strong downtrend. Therefore, investors might want to wait till the price reverses from a support level.
However, the Neo token price was hitting highs of $100 in April and May, and investors could measure the high potential in the NEO coin. The coin price has gone beyond the $100 price level twice this year and could give a rally soon after hitting bottom.
The coin price could hit the low of $25 or less, but this will bring a great opportunity to buy the fundamentally strong NEO Tokens.
Support – $25 and $12
Resistance – $50 and $65