- NEO’s price is on the brink of a price reversal after a recent increase of over 11%.
- A further buildup of the increasing sell-off may see NEO retest $15.8 in the short term.
NEO’s price has increased by over 11% over the past few days, as it peaked at $16.7. As the so-called “Chinese Ethereum” tries to catch up with Bitcoin’s price rally, it appears the bulls are losing steam as a particular technical indicator predicts that prices are gearing up for a downward trend before it regains momentum.
NEO price could see a retrace before a bounce-back
The TD sequential indicator appears to signal a turning point in NEO’s price showing a sell set up. After the last series of ascending candles, a reversal confirms potential price exhaustion on the hourly chart.
NEO/USDT hourly chart
The possible price action also seems to be validated by the support at the 0.78 Fibonacci retracement level corresponding with $16.3. Breaking below the significant floor could see the price at the $15.8 zone, corresponding with the next Fibonacci retracement level at 0.5.
NEO/USDT daily chart
A fall below $15.8 will see the price of NEO tumbling even further down. However, if an adequate buy volume builds up to sustain the current price level, then we might see a bounce off to $16.3 in the near term.
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