NEO/USD forecast: a threatening major support
One thing that many crypto traders tend to forget is that the other half of the equation is the US dollar.
Neo fell again on Monday to break through the $20 level. The market continues to move up and down, and I think at this point we are trying to form a longer-term consolidation zone. However, it should be noted that the market will have to pay close attention to the crypto markets in general, as we have seen quite noisy behavior in the larger coins.
Remember, more than anything else, the major markets will have a major influence on what happens in that market. Neo continues to view the $20 area as an important support, extending to the $17 level. In other words, it wouldn’t be at all surprising to see a bit of a bounce, but at this point it will still struggle to have a longer-term upside move. It looks like Neo will continue to pay particular attention to Bitcoin and Ethereum, both of which will boost the markets in general.
The 50-day EMA currently sits at the $23 level and is drifting a bit lower. Beyond that, we also have a lot of resistance at the $26 level, so I think there are a few hurdles you need to pay close attention to. If we get a bit of a bounce from here, a short-term trader may be able to take advantage of these levels, but I wouldn’t look too much beyond that, at least not until we have more money into riskier assets such as Neo.
One thing that many crypto traders tend to forget is that the other half of the equation is the US dollar. The US Dollar has been like a wrecking ball against most things, crypto included. I think at best you’re looking at a back-and-forth type of market, with the potential for a major breakdown. If we were to break below the $17 level, it is likely that the market will continue to fall quite sharply, possibly showing a potential meltdown. There are many crypto markets right now that look under threat to say the least, so pay attention to the market as a whole to get an idea of where Neo might be headed.