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  • NEO/USD breakdown continues within a descending channel.
  • The drab technical picture is unstoppable at the moment and likely to continue throughout the day.

NEO is facing acute losses on Monday after the support at $6.00 gave in to the selling pressure. Since the high formed at $16.65 in mid-February, NEO/USD has not been able to post any significant recovery movements. Instead, the price has a high affinity for losses and is breaking one support after another.

The more than 13% loss on Monday has forced NEO down a painful path. The digital asset hit an intraday low at $4.00 but an immediate shallow recovery pulled the price above $5.00. Unfortunately, the trend is bearish and selling activity at peak. Gains towards $6.00 are unlikely in the coming sessions with NEO/USD likely to contain the losses around $5.00.

Technical indicators continue to send bearish signals. Since the devastating crash last week, the RSI is stuck in the oversold. A downward slope suggests that slump under $4.00 is not a far-fetched idea.

Interestingly, the 50-day RSI is still above the 200-day RSI which means that it is not over for NEO bulls. In other words, buyers are still present although most are choosing to avoid the market at the moment due to the uncertainty brought about by the extreme volatility. Channel support is still intact and a bounce is also possible.

NEO/USD daily chart

NEO/USD price chart

 

 

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