- NEO lost 5% on daily basis amid global sell-off.
- Leaked comments from Li Xiaolai add pressure.
NEO has reversed a good part of the gains, losing over 7% on daily basis and 5% since the beginning of Friday. The coin moved back to the 11th place in top-10 amid global sell-off on cryptocurrency markets.
While there are no clear fundamental reasons for the sell-off, however, some traders refer to a leaded audio of Li Xiaolai comments, made in a private conversation. Li is one of the Chinese crypto whales, well-known heavy-weight in the industry, rumored to have most Bitcoins in China.
That’s what he said about NEO as cited by Ethereum World news
“”¦NEO is also a stupid project, worthless; if you were Wang Lijie, you would have sold them at 1.5 RMB. But why did its price went up so high? Just because some significant venture capital participated in it and hyped its price. Even Da Hongfei himself is holding very little NEO”¦”
Sure enough, his comments cannot be the key driver of the bearish price movement, but the opinion of a large crypto investor might increase the existing pressure.
NEO technical picture
On the downside, the coin moved below the long-term trendline currently at $39.45. Now it serves as a resistance, followed by $40.00 handle with 50-SMA (1-hour chart) just above. Once it is broken, the recovery may be extended towards Thursday high at $43.56 followed by $45.00. on the downside, the support is seen at $34.02 (200-SMA).
NEO/USD, 1-hour chart
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