- NEO/USD has been confined to a tight range below $9.00.
- The initial support is created by psychological $8.00.
NEO, now 20th largest cryptocurrency with the current market value of $622 million and an average daily trading volume of $417 million, has lost over 1.3% of its value to trade at $8.86 at the time of writing.
NEO/USD has hit the recovery high at $9.95 on November 29 and has been range-bound with bearish bias ever since. The range is limited by $9.00 on the upside and $8.40 on the downside.
The fundamental background has not changed much in recent days, which means that the coin is mostly influenced by speculative sentiments and technical factors.
NEO/USD: the technical picture
Considering the overall bearish sentiment on the market, one may suggest that NEO/USD might continue moving within the above-said range toward the channel support of $8.40 reinforced by the lower line of the daily Bollinger Band. Once it is out of the way, the sell-off may gain traction with the next target at psychological $8.00. A sustainable move below will take us to uncharted territory with the subsequent focus on $7.70, which is the upper boundary of the consolidation channel in October.
On the upside, the initial resistance comes with SMA100 (Simple Moving Average) daily at $9.10. We will need to see a sustainable move above this handle for the upside to gain traction with the next target at psychological $10.00 and SMA50 daily at $10.24.
NEO/USD, the daily chart
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