Lorenzo Stroe
Independent Analyst
- Neo price must hold a key support level to avoid a 25% drop.
- A critical indicator has presented a sell signal for NEO.
- The digital asset suffered a 43% crash down to $31.
After a massive sell-off, Neo price has rebounded from a crucial support level at $31. However, a key indicator has just presented a sell signal which could send NEO even lower.
Neo price on the verge of falling to $21
On the 3-day chart, the TD Sequential indicator has just presented a sell signal for the first time since December 2020. The last signal had a significant bearish continuation, which adds credence to the outlook of the current one.
NEO/USD 3-day chart
On the 4-hour chart, Neo price has just climbed above the 100-SMA support level. A breakdown below this point at $40.7 will quickly send NEO down to $32 at the 200-SMA. Failure to hold this level would be devastating with the potential to drive Neo price towards $21, which is the 50-SMA on the 3-day chart.
NEO/USD 4-hour chart
To invalidate the bearish outlook, NEO bulls must push the digital asset above the 50-SMA at $44.8. A breakout above this point could quickly launch Neo price towards the psychological level at $50.
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