NEO price analysis: NEO/USD gained 2%, but recovery capped by $34.00

• NEO stays above critical support levels, but more upside is limited.
• The coin needs to escape a narrow range to gain momentum.

NEO, the 12th largest coin with a market value $2.1B and the average daily trading volume about $96M against $86M on Sunday. China’s flagship project has gained 2% on a daily basis amid recovery attempts on the cryptocurrency market. NEO/USD is changing hands at $33.50, off Sunday’s high reached at $33.94.

NEO’s technical picture

From the intraday perspective, NEO/USD is supported by 100 and 50-SMA (1-hour chart) at $32.65 and $32.84 respectively. If sellers clear this area, the sell-off may be extended towards $31.40 – the support created by long-term sloping trend line, broken on July 15. The upside is capped by $34.00 handle, that stopped the recovery on the weekend; if broken, the bulls may take NEO towards the next hurdle at $34.45 (200-SMA, 1-hour chart).  

On a longer-term timescale, the coin stays in a range, limited by $34.00 on the upside and $31.40 on the downside. Bullish breakthrough will shift the focus onto $40.00 handle, closely followed by 50-DMA. On the downside, the ultimate bearish goal is $27.03, the lowest level since June 29.

NEO/USD, 1-hour chart