- NEO has reversed earlier gains amid technical correction.
- The vital resistance is created by $140.00 handle.
NEO hit the recent high at $14.76 on Monday and retreated to $13.90 by the time of writing. The17th largest altcoin with the current market capitalization of $982 million has lost over 5% of its value on a day-on-day basis and 2% since the beginning of Tuesday trading. Despite the retreat, the coin is still positive on a week-on-week basis, with over 14% of gains.
As there is no NEO-relevant fundamental news the sell-off is likely to be caused by technical factors and profit-taking on speculative longs.
NEO’s technical picture
Now that the price slipped under $14,00, the initial support comes at by $13.50 (the lower line of Bollinger Band on 4-hour chart). A sustainable move below this handle will trigger new selling orders and push the price towards $13.00 with 4-hour SMA50 (Simple Moving Average) located on the approach to this handle. Once it is out of the way, the downside momentum may gain traction and bring $12.40 (SMA200, 4-hour) into focus.
On the upside, the initial resistance is created by the above-said psychological $140.00 strengthened by the middle line of Bollinger Band on 4-hour chart. The next hurdle awaits NEO bulls on approach to $14.70, protected by a confluence of technical indicators, including the upper lines of 1-day and 4-hour Bollinger Bands. and the recent high. Once it is out of the way, the recovery will extend towards psychological $15.00.
NEO/USD, 4-hour chart
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