NEO technical analysis: Set up favors bears, a test of 12.50 support on the cards
- NEO is one of the weakest across the crypto space on Sunday, down 8% over 24 hours.
- Technical setup turns in favor of bears, as charts across different time frames display bearish patterns
NEO (NEO/USD), emerges one of the biggest losers among the top 20 digital currencies traded, losing 8+ percent over the last 24 hours. The bulls failed to benefit from the recent strategic step adopted by NEO of investing in Travala.com. Markets opined that the strategic step could boost the current market performance of the coin and accelerate it towards reaching $20 faster.
NEO/USD 15-minutes chart
- Sellers in complete control, a break below 13.44 horizontal support will confirm inverted cup and handle formation.
- Downside targets are aligned at 13.00 and 12.50 levels.
- Bulls could test the offers 13.64 (10-DMA) and 13.76 (2-DMA).
NEO/USD daily chart
- A potential rounding top formation is spotted on the daily sticks.
- The pattern will get confirmed once the prices close below the 13.25 figure.
- A breach of the last could accentuate the downside, leading to a test of 12.63 (pattern target) over the next month.
Levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
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