NEO price analysis: NEO/USD goes ballistic, gains 17% on daily basis; $40.00 in focus

NEO is one of the best performing digital coins: it gained over 17% since Monday mid global recovery on cryptocurrency markets. NEO was severely beaten during the recent sell-off, which pushed it deep into oversold territory and created a strong incentive for a strong comeback.  

NEO/USD gained 5% since the beginning of the day to trade at $38.00 at the time of writing. Now it is again the 12 largest coin with market value $2.4B, and average daily volume doubled from $72M on Sunday to $153M at the time of writing.

NEO's partner project - Ontology - launched a successful mainnet. While there is no direct link between the event and the price surge, the announcement might have increased an upside momentum.

Ontology is a Shanghai-based startup, supported by NEO. It launched the network on June 30, joining the ranks of infrastructure projects that have moved on along its roadmap.

NEO technical picture

On the downside, the local support is produced by 100-SMA (4-hour chart) at $33.88, followed by $30.00, which is the psychologically important level with 50-SMA ($30.93) on approach. On the upside, the Asian high at $38.95 followed by $40.00 creates the local resistance area. Once it is cleared, the recovery may be extended towards $41.52 (200-SMA) and the to the longer-term sloping trendline at $42.00

NEO/USD, 4-hour chart