Neo Price Prediction: NEO faces downward pressure as investors prepare to “sell the news”

Flamingo Finance is a full-stack DeFi protocol built on NEO. Binance has recently announced a new Launchpool that included FLM tokens, set to launch on September 27. FLM will then be listed on September 28 with four trading pairs. The announcement had a notable impact on the price of NEO, boosting it by 20%.

Binance has also announced the addition of NEO as a borrowable asset, one of the only three assets available right now. However, it seems that some large NEO whales are getting ready to sell. 

Several significant transactions have been seen through the Whale Alert Twitter account. Most of them are millions of dollars worth of NEO being transferred to Binance, most likely to be sold or getting ready to sell. Around 1 million NEO tokens were transferred to Binance within hours, representing close to $22 million. 

Additionally, it seems that the NEO Blockchain has stopped working as no new blocks have been created in the past 30 minutes according to NEOtracker. This seems to have been caused by the launch of Flamingo Finance which made a statement on Twitter stating that they are looking into this issue. 

NEO/USD daily chart

There is an inverted hammer candlestick forming on the daily chart, a potential sign of a reversal in the short-term. The top of the wick is $23.2, which is the most critical short-term resistance. The MACD has remained bearish even though NEO is still up by around 17%. 

NEO/USD 4-hour chart

On the 4-hour chart, the TD sequential indicator is close to presenting a sell signal. The price of NEO pierced briefly through the 50-MA but didn’t manage to transform it into support. The next most important support level is at the 100-MA.

A bearish breakout below $21.22, the 100-MA would be significant and likely to take NEO down to $20. On the other hand, if the price can climb above the 50-MA and transform it into support, NEO could aim for $24.