NEO price must hold $13.87 crucial support level to avoid a 10% drop
- NEO price is inside a significant downtrend on the daily chart.
- The digital asset needs to hold $13.87 critical support level to avoid further downside price action.
NEO has endured a significant downtrend over the past few months. Since mid-September, the so-called "Chinese Ethereum" saw its price drop by nearly 48%, going from $26 to recently hit a low of $13.9. While investors continue to search for a market bottom, support weakens suggesting further losses on the horizon.
NEO price prediction: The technical picture
On the daily chart, NEO's price is right where the 200-SMA stands, at $13.87. This critical support level needs to hold or prices will likely slip further.
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NEO/USDT daily chart
The bulls only have a positive indicator in their favor. The Relative Strength Index (RSI) is currently in oversold territory for the first time since March. During that time, NEO went through a massive 550% rally after the RSI got overextended.
If $13.87 is defended, NEO could jump towards $17.45, where the 100-SMA is located.
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NEO/USDT 4-hour chart
Nonetheless, the bears are still in control over practically all time-frames. For instance, NEO's price dropped below the 50-SMA, 100-SMA, and 200-SMA on the 4-hour chart, turning these barriers into resistance.
Although the RSI is on the verge of overextension within this time frame, it may not help prices recover. The last time this happened, NEO kept dropping further. Therefore, if the critical support level at $13.87 is lost, this altcoin could easily fall towards the next areas of interest at $12 and $11.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
