NEO price analysis: NEO/USD double-top pattern spotted will $27.00 support hold?
|- NEO upside has been capped below $30.00; critical resistance is at $28.00.
- The 38.2% Fib support coincides with the trendline; a reversal is likely to occur at this point.
NEO is still capped below $30.00 in spite of the attempts it is making to retrace higher. It is essential to know that since the crypto lost the momentum that has it trade marginally above $43.00, it has been exploring the water downstream. Mid last month, there was another bull run, but it came short of $41.00. NEO/USD has been correcting lower to the extent of exchanging hands slightly above $26.00 on Friday last week.
Over the weekend, the buyers staged a recovery using the support at $26.5 – $27.00. The price cleared the resistance at $27.5 on Sunday 5. In addition to that, NEO opened the trading today, Monday 6 with higher corrections above the resistance at $28.00. However, it has formed a double top pattern as observed on the chart leading to lower corrections that are currently canceling the gains made in the last few days.
NEO is testing the support at the 38.2% Fib level with the last drop from $28.73 to a low of $26.12 at $27.11 slightly above $27.00. The Fib level also coincides with the trendline support. Therefore, a reversal is likely to occur at this point in the short-term. However, if NEO extends declines below $27.00 support, it could retest the major support at $26.00. Significantly, a higher correction is overdue because the stochastic is deep in the oversold and is beginning to change direction north. The broken support at $27.50 will stand in the way of upside movement but the critical resistance is at $28.00 while the ultimate intraday resistance is at $28.50.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.