- The falling wedge pattern guides NEO buyers into a bull trap.
- The downtrend is likely to find support $10.
NEO is leading the cryptocurrency market in reversals on the day. From an opening price of $11.28, NEO is exchanging hands at $10.76. However, this after touching an intraday high of $11.37.
The four-hour chart shows the price broke above a falling wedge pattern only to slide into a bull trap. The sharp reversal is likely to test the next support target at $10.
The Relative Strength Index (RSI) is putting a lot of emphasis on the growing bearish momentum with the retreat towards 50. The Moving Average Convergence Divergence (MACD) also features a bearish cross that is fueling the sellers.
On the other hand, $10 appears to be a credible support. The 50 Simple Moving Average SMA) on the four-hour chart is still widening the gap above the 100 SMA. This means that the buyers have not given up entirely and could force a reversal in the short-run.
NEO/USD 240′ chart
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